Latin America Advisor

On June 29, Cefeidas Group’s Managing Director, Juan Cruz Díaz and Political Risk Specialist, Megan Cook were published in the Inter-American Dialogue’s Latin America Advisor.

They responded to the following questions:

Argentina suffered a setback when MSCI on June 20 declined to upgrade it to emerging market status, relegating it for at least another year to the index provider’s list of frontier markets, which also includes Kazakhstan, Romania and Nigeria. MSCI’s announcement came just a day after global investors piled into Argentina’s sale of $2.75 billion in 100-year bonds, marking the first time a junk-rated sovereign has sold a so-called “century bond.” How big a blow was MSCI’s decision to the government of President Mauricio Macri, who has pushed for market-friendly reforms? How will MSCI’s move affect Argentine businesses and the country’s economy? Is investors’ reaction to the “century bond” offering a strong vote of confidence in Argentina, or is it more a sign of investors’ thirst for yield? 

To read the comment, please click here.