PBA37D
📊 The ratio of BA37 to AE38 (sovereign bond) is near historic lows, suggesting a potential relative value trade for aggressive investors aiming for nominal gains.
🤝 Despite being a provincial bond (Buenos Aires), it benefits from political alignment between ruling parties (PRO/LLA) within the province, potentially reducing political risk.
📜 Key features like Indenture 2005, smaller issuance size, and favorable capital repayment schedule make it a preferred choice over other sovereign options for some analysts.
@ClaveBursatilTV:
“The ratio, sorry, BA37 to AE38 in pesos, which is the same in dollars. Rotate a little bit for an aggressive profile, sell a part of AE38 and move to BA37 because the ratio is at the lows of recent times. Let’s see what happens. This ratio reached 0.96 in February of this year. So, the percentage you have here to appreciate in terms of nominals is very good. It’s 13% in nominals, Tincho… It could be a risky trade to try and add 13% nominals of AE38. Not bad. It doesn’t seem like a bad option for a riskier profile, yes… That’s why it’s my favorite, that’s why the BA37 is my favorite by far. I mean, whichever way I look at it, I sleep more peacefully. It pays fewer capital installments in the coming years. It’s a much smaller issue and it’s Indenture 2005, something the BA isn’t, you see? The BA37 leaves me calmer. I have more upside potential. Really, for me, it’s the best. That’s why I always say, ‘Hey, the bond I like the most is the BA37.’ Today in an interview they told me, ‘Gus, I need you to tell me, for you, which will be, which is your favorite bond?’ But you can’t say the BA37. Another one. ‘Why not?’ ‘Well, because it’s from the province of Buenos Aires and I don’t like Kicillof.’ Okay, fine. I have to choose a sovereign. Well, if we choose a sovereign, but not the AL30. Okay, fine, you’ll see which one it is. But I still named it, I named it at the beginning, but they didn’t let me, they censored me. If you ask me which is my favorite bond, I tell you BA37 without thinking and without hesitation today. Like I used to say AL30 in 2022-2023, but well.”
Watch the exact part of the video where @ClaveBursatilTV talks about Bono Provincia Buenos Aires 2037 Ley NY here:
Watch the video on YouTube
Read more articles analyzing Bono Provincia Buenos Aires 2037 (PBA37D) at the provided link. PBA37D stock.
