Capital Markets
From The Report: Argentina 2018
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Argentina’s historic issuance of $16.5bn worth of bonds in April 2016 marked the country’s return to the international capital markets after effectively being barred for 15 years. Argentina has had a troubling history in global markets, having defaulted on its sovereign debt eight times since 1816, the most significant being the 2001 default on more than $80bn. Since taking office, President Mauricio Macri’s administration has successfully reached an agreement with its holdout creditors and implemented a number of market-friendly reforms, ranging from lifting currency restrictions to abolishing export quotas. While this helped to significantly improve investor confidence in the nation, bolstering its performance across most metrics, some of these gains have been eroded in the early months of 2018, amid creeping inflation and a shift away from emerging market equities among investors. This chapter features an interview with Marcos Ayerra, President, Comisión Nacional de Valores.

Articles from this Chapter

Overview

Back at the table: Following a return to international markets in 2016, the country is confronting the challenges of global interconnectedness
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Argentina’s historic issuance of $16.5bn worth of bonds in April 2016 marked the country’s return to the international capital markets after effectively being barred for 15 years. Argentina has had a troubling history in global markets, having defaulted on its sovereign debt eight times since 1816, the most significant being the 2001 default on more than $80bn. Since taking office, President Mauricio Macri’s administration has successfully reached an agreement with its holdout creditors and…

Interview

Clear expectations: Marcos Ayerra, Chairman, National Securities Commission (Comisión Nacional de Valores, CNV), on investment mechanisms and changing market conditions
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Interview :Marcos Ayerra How will the Production Financing Law impact Argentina’s capital markets sector? MARCOS AYERRA: The law was approved by the Senate in May 2018, and it continues to represent an important advancement in reforming Argentina’s capital markets sector, with a clear objective towards fully recognising the country’s financing potential. Multiple improvements have been made through the sanctioning of this law. One key step was the improvement in corporate governance…

Analysis

Timing is everything: Interest in foreign and local initial public offerings wanes
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While the market-friendly policies of the administration of President Mauricio Macri have been welcomed by international investors and local businesses alike, the prevailing view of initial public offerings (IPOs) has become increasingly bearish. Although there were two new listings in 2016 and three in 2017, only the 2016 IPOs are still trading in positive territory, whereas the shares floated in 2017 are trading down by as much as 40%. As in many emerging markets, given ongoing monetary policy…

Analysis

A capital plan: Wide-ranging reforms to help attract new investment and fund infrastructure development
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Despite a turbulent few months across many emerging markets in mid-2018, Argentina is pushing ahead with growth-oriented capital markets reform, supported by a strategically important index reclassification and record-breaking international development financing. In May 2018 Congress passed legislation reforming the role of the market regulator, the National Securities Commission (Comisión Nacional de Valores CNV), as well as loosening restrictions on the type of investments funds can make. Under…