Overview
- Argentina’s JP Morgan risk spread closed at 657 basis points after a 47% fall in October, marking a sharp improvement in financing conditions.
- Equities and sovereign bonds surged last week, with the S&P Merval up about 70% in pesos and 73% in dollars following the election.
- Tecpetrol issued $750 million at 7.625% and YPF raised $500 million at 8.75% to fund Vaca Muerta and other investments, reopening corporate access to dollar markets.
- The central bank signaled a move to net FX purchases to rebuild reserves, and analysts say new corporate and potential provincial placements could channel additional dollars into the market.
- A cabinet reshuffle put Manuel Adorni in the Cabinet Office with Diego Santilli leading negotiations, and markets now hinge on approval of the 2026 Budget and reforms as U.S. Treasury support is reported to cover roughly $4.5 billion due in January and a sovereign return in early 2026 is viewed as possible.