Investors Stuck in Argentina Rush to Local Corporate Bond Market
- Money managers flush with pesos they can’t get out of country
- Surging demand for local debt already creating price anomalies
This article is for subscribers only.
Foreign investors are starting to flock to Argentina’s usually sleepy local corporate-bond market, desperate to reinvest cash stuck in the country due to recently imposed capital controls.
After getting shut out of international debt markets amid a collapse that has put the country on the verge of default once again, borrowers including oil producers YPF SA and Pan American Energy LLC are turning to peso bonds for financing. Yet instead of encountering risk averse money managers wary of all things Argentina, they’re getting significant interest from global investors that can’t repatriate funds, according to people with knowledge of the matter.