trending Market Intelligence /marketintelligence/en/news-insights/trending/8-GvxslYI4If9zQi9AdG2Q2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

Moody's: Argentine fund managers play safe to buoy AUM growth

Street Talk Episode 61 - Investors debate if U.S. banks have enough capital in post COVID world

You Down With PPP? Consider The Risks

Street Talk Episode 60 - You Down With PPP? Consider The Risks

Street Talk Episode 56 - Latest bank MOE shows even the strong need scale to thrive


Moody's: Argentine fund managers play safe to buoy AUM growth

Argentine asset managers are moving toward more conservative strategies, with a focus on liquidity and foreign investments, as financial conditions in the country continue to be unfavorable ahead of presidential elections, Moody's said in an Aug. 1 report.

The country's fund industry suffered huge losses as the exchange rate crisis last year struck peso-denominated short-term securities, which had yields of up to 30% at the time, according to Moody's. As a result, asset managers have looked into funds with lower risk profiles, although some had more success than others, the rating agency noted.

In particular, independent asset managers have eclipsed bank-owned managers when it comes to broadening their AUM portfolios. Independent managers released new products like Latin America-specific funds or reduced their portfolio durations, whereas bank asset managers fell behind with late releases and old strategies, Moody's said.

AUM among independent managers have expanded 40% through June, while banking AUM levels have not yet recovered since April 2018, the rating agency said.

Latin American securities, excluding Argentina and high-yielding money market funds, emerged as the favored funds among successful asset managers, especially given uncertainty brought by the impending presidential elections, Moody's said. These Latin America-specific vehicles are made up of Chilean and Brazilian sovereign bonds, which have low volatility and hard-currency returns.

Although having full exchange rate risks, local currency money market funds are popular due to their markedly high interest rates, which could reach up to 60%, Moody's said.

Aggregate AUM in Argentina rose 22% by June from its lowest point in October 2018, the rating agency noted.