Supply concerns loom on Repsol payment

摘要

Supply worries are coming to the fore in Argentina's bond market amid expectations that Spain's repsol will soon starting selling the US$5bn in bonds it will receive in compensation for the government's expropriation of its 51% stake in oil company ypf. Argentina's Congress approved the payment early in April and strategists think Repsol could receive the bonds as soon as this week. So far, asset prices have yet to react to the possibility that Repsol might start monetising this payment but some investors are bracing themselves for a reversal in the recent rally of Argentine sovereign prices.