Argentine bond market shows dollar returns via corporate debt and carry trade

Investment strategies in Argentina are currently focusing on generating returns in dollars through both corporate bonds and local currency instruments. The financial firm One618, led by Eduardo Costantini, has reported a 7% annual return through a diversified portfolio of corporate debt. Key holdings in this portfolio include Tecpetrol, Vista Energy Argentina, Pampa Energía, Telecom Argentina, and YPF, which collectively represent 38.5% of the fund.

Simultaneously, the stability of the official exchange rate has facilitated successful carry trade strategies. In the first 20 days of September, certain inflation-adjusted (CER) and fixed-rate bonds achieved dollar-denominated returns between 2.5% and 4.5%. This performance was driven by a combination of a stable exchange rate, inflation adjustments, and spread compression, allowing local instruments to outperform benchmarks such as the S&P 500 during specific windows.