Key Points
- Argentina raised US$3 billion in a one-year repo at 7.4%, shoring up reserves before a January 9 dollar payment.
- JPMorgan supplied about US$340 million, pushing its total exposure near US$2 billion, a reported decade high.
- A March 9–11 New York “Argentina Week” is the next stress test for a broader return to global bond markets.
When a country runs short of dollars, the clock becomes a character in the story. In early January 2026, Argentina faced a looming hard-currency payment due January 9.
Rather than gamble on last-minute improvisation, officials reached for a tool that speaks Wall Street’s language: a repo, essentially a collateralized dollar loan.
The central bank secured a one-year, US$3 billion repurchase agreement with six international banks, paying a reported 7.4% annual rate and pledging BONAR bonds due 2035 and 2038 as collateral.
Why JPMorgan Is Putting Fresh Money On Argentina Again. (Photo Internet reproduction)
Demand was said to exceed the final size—around US$4.4 billion—yet the government capped the deal at US$3 billion, signaling it wanted dollars without looking desperate.
JPMorgan Signals Renewed Confidence In Argentina
The most telling subplot sat inside the syndicate. Reporting tied to the transaction said JPMorgan provided about US$340 million, lifting the bank’s overall exposure to Argentina to roughly US$2 billion—described as its highest in about a decade.
That matters because the repo is not a grant and not a rescue. It is a wager that the rules of the game are stabilizing enough to take secured risk again.
Argentina’s history explains why this is a big deal. The country has defaulted repeatedly since independence, including the 2001 collapse and another default cycle in 2020.
The last time Argentina truly re-entered global markets was 2016, after settling holdout litigation, when a US$16.5 billion bond issuance reopened the door. JPMorgan helped lead that return—and later watched the door slam again.
Now, risk pricing is shifting. In late January 2026, Argentina’s country-risk measure dropped below 500 basis points, near its lowest since mid-2018.
The government is also staging its next audition: a March 9–11 “Argentina Week” in New York, where policymakers and business leaders will court investors.
JPMorgan is not just visiting. It employs more than 3,600 people in Argentina, has leased roughly 20 additional floors in Buenos Aires with delivery expected in 2026–2027, and has discussed adding about 1,500 jobs over five years.
Economy Minister Luis Caputo previously worked at the bank—another strand in a long relationship.
