Argentina

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.

Progress has been made in negotiations between the Argentinian government and US holdout creditors, court-appointed mediator Daniel Pollack said late Wednesday.

Argentina’s government reopened negotiations with holdout creditors on Monday after securing a $5bn loan from seven global banks last week.

Reports on Friday that the Argentine government would begin negotiations with holdout bond investors on Wednesday sparked buying in the nation’s bonds as the sovereign — rated Caa1/CCC+/CCC rated and still in default — proves an unlikely beacon of stability in Latin America.

Argentine sovereign bonds hit highs for the year on Monday after the US court-appointed mediator in the holdout dispute said that the country’s secretary of finance and vice-chief of cabinet would return to New York to negotiate with bond investors in the second week of January.

MTN investors are speculating that the huge yield available on Argentine peso bonds may be worth the risk of buying bonds denominated in a currency which is undergoing official devaluation.

MTN investors are speculating that the huge yield on Argentine peso bonds may be worth the risk.

Argentine energy company Medanito will wait until January to attempt its debut international bond issuance.

Energy company Medanito will hit the road this week to meet fixed income investors ahead of a maximum $150m deal as Argentine borrowers continue to show interest in international markets despite the small size of most companies in the country.