Portfolio Personal Inversiones says the Merval equity index is up 80pc in dollar terms and the average return on Argentine bonds has been 70pc. Goldman Sachs and UBS warn that the snap-back rally is largely over, code for ‘take your profits and get out’.
“Global investors have given Milei the benefit of the doubt that Argentina may not have to default after all. They were pricing in a 30pc return on debt restructuring and now it is around 48-50pc,” said Claudia Calich, head of emerging markets debt at M&G.
“What he has done on a cash accounting basis is remarkable, so hats off to him. But that alone is not enough to bring boom times. We haven’t seen the recovery in foreign direct investment,” she said.
Indeed not. The Argentine economy is close to cardiac arrest. The industrial collapse in March was hair-raising: cars -24pc, metals and…
