Argentina

Latin American debt bankers could not hide their delight on Wednesday evening after a remarkable day in new issue activity that included two heavily oversubscribed deals from high yield issuers that traded up in the grey.

The Province of Buenos Aires is likely to provide an early test of appetite for Argentine credit on Wednesday after completing a roadshow with Citi, HSBC and JP Morgan.

Latin America’s pain is Argentina’s gain. A torrid year for bond markets and economic struggles across the region have set the stage perfectly for Argentina — so long the sick man of Latin America — to return to international bond markets with an audacious trade.

At least five Argentine provinces are considering tapping international bond markets this year, according to investors, with the Province of Buenos Aires likely to be first after announcing a roadshow on Wednesday.

Should Argentina issue its $15bn in one go or not? If president Mauricio Macri’s government — and its debt officials — continue to communicate and then back those words with action, it won’t matter how many deals it takes.

Bankers and analysts were confident that Argentina will find the demand it needs for a triumphant return to international capital markets after the mediator in its debt dispute said that the 15 year legal battle between the country and leading holdout creditors is nearing a solution.

Argentina’s nearing return to international bond markets after more than 15 years away could drive the Province of Buenos Aires to get its bond funding out the way as soon as possible to avoid clashing with the up to $15bn of sovereign supply in the pipeline.

Lat Am bond bankers said the seven banks understood to have led Argentina’s repo trade in December were the strongest candidates to lead the sovereign’s seemingly imminent re-entry into international capital markets.

Argentina's finance minister, Alfonso Prat-Gay’s announcement that the country would issue up to $15bn of bonds to pay holdout investors cooled enthusiasm for the sovereign’s existing debt on Tuesday.

Argentina may be able to access international capital markets even if US creditors continue to reject restructuring proposals, said analysts this week.

Argentina may be able to access international capital markets even if US creditors continue to reject restructuring proposals, according to strategists at Barclays.

Argentina came a step closer to regaining capital markets access this week with the announcement of a first settlement with holders of its default debt. Analysts warned, however, that a rapid resolution to negotiations with the remaining holdouts is unlikely.