Reported 6 months ago
Bondholders in Argentina's wealthiest region, Buenos Aires, are speculating on President Milei's willingness to let the region go bankrupt despite his reputation for aggressive economic reforms. Investors have taken a gamble on Buenos Aires bonds, which rallied even after Milei reduced money transfers to local governments, causing revenue cuts. The province faces financial challenges, including a significant deficit, falling revenue, and impending debt payments. Despite concerns, traders are still optimistic about the province's ability to meet its financial obligations with various funding sources, viewing Buenos Aires bonds as a potentially lucrative investment opportunity amidst a broader emerging markets rally.
Source: YAHOO