Aug. 13 (Bloomberg) -- Risk-reward of Argentine bonds is
balanced, Bank of America Merrill Lynch strategists Jane Brauer,
Claudio Irigoyen, Sebastian Rondeau and economist Marcos
Buscaglia wrote in a report today
* In an optimistic scenario, third-party deal will help
Argentina cure its default; 2033 bonds would rise to about
107 cents on the dollar
: BAML
* If no deal is reached, economy can either “muddle through”
or face “severe financial distress, which would push 2033
bond prices down to 65 cents on the dollar
: BAML
* BAML prefers Argentina’s 2033 Discount bonds over 2038 Par
bonds
* Me-too claims from holdouts owning New York-law bonds would
total about $7b: BAML
* BAML is ‘‘constructive’’ because of baseline scenario where
there is ‘‘likely to be a settlement between Argentina and
the holdouts next year or under a new government, and on the
outlook for a political transition