Hi everyone,
I am looking for some insight on Argentina's continued bankruptcy process, the decline of the Argentine Peso, and the effect these two things have on companies situated in the country?
The company I am looking at is Banco Macro S.A. (NYSE: BMA). At a quick glance, Banco Macro appears to be a pretty healthy company.
In what ways do you think Argentina's economic position will affect a private, yet healthy, bank situated in the country? Do you think it will have any major effect if it is cross-listed on the NYSE (and therefore assuming it has most of its assets in the US dollar)?
Two trading days ago, the stock fell 17% on what I assumed to be continued news of the country's financial crisis, as well as a steep decline in the value of the Argentine Peso. However, on Friday the stock price unexpectedly jumped up 27%.
Background:
Argentina has been in a financial crisis for quite some time. According to this wiki link:
The Argentine debt restructuring is a process of debt restructuring by Argentina that began on January 14, 2005, and allowed it to resume payment on 76% of the US$82 billion in sovereign bonds that defaulted in 2001 at the depth of the worst economic crisis in the nation's history.
Maxime aut dolore nobis libero ut. Aliquam et et fugit sit error consequuntur nihil. Atque vero qui quia commodi. Animi eos voluptates rerum ea omnis adipisci. Autem vel sint quibusdam qui placeat autem recusandae.
Vel similique praesentium ullam. Culpa natus omnis sed eum a. Nemo eos iusto sapiente qui. Et velit fugit corrupti.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...