luis maría corsiglia caja de valores - argentina
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International Seminar Punta del Este – Uruguay October 26 – 28, 2005 Argentinean Public Debt change organization under regulator perpective and Caja de Valores involvement as clearing agent. Luis María Corsiglia Caja de Valores - Argentina. Domestic Marketl The debt in the´90s. - PowerPoint PPT PresentationTRANSCRIPT
International SeminarInternational Seminar Punta del Este – Uruguay Punta del Este – Uruguay
October 26 – 28, 2005 October 26 – 28, 2005
Argentinean Public Debt change Argentinean Public Debt change organization under regulatororganization under regulator
perpective and Caja de Valores perpective and Caja de Valores involvement as clearing agentinvolvement as clearing agent
Luis María CorsigliaCaja de Valores - Argentina
Domestic MarketlDomestic MarketlThe debt in the´90sThe debt in the´90s
Further to the´90s the Argentine sovereign debt market was designed after the US model based on 3 instruments:
Treasury Notes in Pesos and Dollars (LETES) Treasury Bonds in Dollars (BONTES) Global Foreign Bonds in Dollars (Global)
As a result of the restructuring process (Brady Plan) the following instruments were placed:
Discount Par Bonds Floating Rate Bond
The structure and design of the market dramatically changed further to the Default declaration and the later pesification of the national, provincial and municipal public debt.
Classified as per their conditions of issue:
Applicable law: Argentina (Bontes, Bocones, PG, Boden, Exchange Bonds) Foreign (Global, Brady, Eurobonds, Exchange Bonds)
Types of debt: Compulsory (Brady, Bocones) Voluntary (Global, Bontes, Eurobonds) Restructured (Par, Discount, Quasipar)
Trading Market: International (Global, Brady, Exchange Bonds) Domestic (Bontes, Letes, Bocones, Boden, Exchange Bonds)
Domestic MarketDomestic MarketThe debt after year 2001 The debt after year 2001
Further to year 2002, other instruments of monetary regulation issued by BCRA were added, accounting for a $ 26 billion stock
BCRA Letras(LEBACs) In Pesos, CER-adjusted and Dollar-adjusted Pesos Short Term (under 24 months)
BCRA Notes (NOBACs) In Pesos, Pesos + BADLAR* and CER-adjusted Pesos Long Term (from 1 to 4 years)
Both are traded on MAE and BASE and placed through dutch auctions at a sole price
*BADLAR: Buenos Aires Deposit Large Amount Rate
Domestic MarketDomestic MarketThe debt after year 2The debt after year 2001 (Cont)001 (Cont)
Further to the public debt restructuring, the share issued in dollars diminished and conditions were
simplified. Performing debt equals the relevance of the new exchange securities.
Domestic MarketDomestic MarketThe debt after 2The debt after 2005 exchange005 exchange
Debt stock by creditorsas of March 31, 2005
InternationalEntities24%
Performing Debt37%
RestructuredDebt26%
Debt in Default13%
Stock of debt by currencyas of March 31, 2005
Others
12%
Pesos37%
Euros14%
Dollars37%
Map of bonds after the ExchangeMap of bonds after the Exchange
BODEN BONTEBOCON BOCON BOGAR IOULEBAC and NOBAC LETES
Restructured Debt FISCAL CREDITDISCOUNT GLOBALPAR BRADYQUASIPAR FOREIGN NOTESGDP EUROBONDS
SAMURAIPROVINCIAL
Sovereign DebtSovereign DebtYield Yield
October 2005
RS08
RF07
PAVP
DIVPPR13
RS14
PRE9
PRE8PR11
PR12
NF18
DIVY PAVA
DIVARA13
RG12
PAVY
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0 5 10 15 20
Risk Modified Duration
Annual Yie
ld
Pesos + CER curve
Dollar curve
Source BASEOwn production
Sovereign DebtSovereign Debt issued in CER-adjusted Pesos
RF07RS08
PRE8
PR11
PR12NF18
PR13
RS08
RF07
PR11
PRE8
PR12
NF18
PR13
-2,00%
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
0 2 4 6 8 10 12 14
Risk Modified Duration
Annual Yie
ld
March 2005 curve
October 2005 curveQuotation above par
Source BASEOwn
production
Evolution of yieldsFurther to the Exchange results
Boden 12
Boden 13
Boden 13
Boden 12
Boden 06
0%
2%
4%
6%
8%
10%
12%
0 1 2 3 4 5
Risk Modified Duration
Annual
Yie
ld
Debt Exchange finished
During Debt Exchange
Source BASEOwn production
Sovereign Debt Sovereign Debt issuedissued in Dollars
Evolution of yields After the Exchange results
2.524.87
PRE8/PR11
RF07/RS08
PAVPDIVP
PR13
RS14
NF18PRE9
5.46PRE9/NF18
RS14
PR12
PR11
RF07RS08
PRE8
PR13DIVP
PAVP
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
0 5 10 15 20 25
Risk Modified Duration
Ann
ual Y
ield
New securities tradingstart
July 28th historicalmaximun
Source BCBAOwn production
Sovereign Debt Sovereign Debt issued in CER-adjusted issued in CER-adjusted Pesos
Evolution of yieldsAs a result of addition of new instruments
Above par quotation
DIVY
RG12
RA13
RA13
RG12
RE06
DIVAPAVA
PAVYDIVY
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
9.0%
9.5%
10.0%
0 2 4 6 8 10 12 14 16
Risk Modified Duration
Annual Yie
ld
New securities tradingstart
July 28th historicalmaximun
Source BCBAGeneración propia
Evolution of yields asA result of addition of new instruments
Sovereign Debt Sovereign Debt issued iissued in Dollars
The RepublicThe RepublicTarget and characteristics of the Eligible DebtTarget and characteristics of the Eligible Debt
To achieve sustainable debt dynamics• To match the requirements of debt services and payment
capacity of the new Argentine economic structure• To create the conditions for the strengthening of fiscal
previsibility• To lower vulnerability from foreign shocks
• Total: U$S 81.800 million • Including interests accrued and
unpaid as of Dec. 31, 2001(aprox. U$S 2.1 mm)
• 152 bonds– Amounting to 178 financial products
11 New Bonds
152 Eligible Bonds
Eligible Bonds8 Legislations6 currencies
New Bonds4 Legislations4 currencies
Eligible Debt
Participants of the processParticipants of the process
Global Organizing BanksGlobal Organizing Banks
Exchange and Paying AgentExchange and Paying Agent
Reception of old bonds, delivery of new bonds and execution of future payments
Information AgentInformation Agent
Information release during the exchange and reception of phone and internet consultation
Partícipants of the processPartícipants of the process
Domestic organizing Banks
Domestic Clearing Agent
Global ResultsGlobal Results
Par 15,000
Offers on Par 20,318
Leak on Discount Bonds 5,318
* 1.792 in new Discount Bonds
Quasi-Par 8,329
Offers on Par Bond 10,486
Leak on Discount Bond 2,156
* 1.039 in new Discount Bonds
Source Mecon
Exchanged Debt 62,248 35,238
Par Bonds 15,000
Discount 11,909
QuasiPar 8,329
Leak
Effect
Caja de Valores RoleCaja de Valores Role
Individual Offers
through Caja
97,240
Par Bonds 76,524
Discount Bonds 17,911
Quasipar 605
Global Offers sent to BoNY
10,053
Caja de Valores daily sent received offers grouped
according to the selected bond
Exchange Offers
International Links
Euroclear
Euroclear
Clearstream
Clearstream
DTC DTC
CBLC CBLC
Cavali Cavali Deceval
Deceval
Indeval Indeval
Iberclear
Iberclear
DCV
DCV
CVSA links with Internationals CVSA links with Internationals DepositoriesDepositories
C.V.S.A. is direct participant of:
Euroclear (Brussels),
Clearstream (Luxembourg),
DTC (USA)
Operating reciprocal AccountsOperating reciprocal Accounts
Iberclear (Spain): Since Nov´99; Monthly average of 40 orders.
CBLC (Brazil): Since July´04 Authorized to receive orders.
Connections
Caja de Valores S.A.
DTCC IberclearEuroclear CBLC
Proprietary Systems
Clearstream
Sistema S.W.I.F.T.
S.W.I.F.T ISO 15.022
Letters of Intent withLetters of Intent with
Cavali ICLV S.A. (Peru) Depósito Central de Valores S.A.(Chile) Central Depository of Ukrania, NDU
Progress in negotiation for the opening of reciprocal Accounts with INDEVAL (Mexico)
Amount of balances in our custody system of securities in CDs
CVSA28%
Clearstream3%
Euroclear5%
DTC1%
CRYL63%
ClearstreamEuroclearDTCCRYLCVSA
Volumen of CustodyVolumen of Custodyas of October ´05 in CDs (P/V in millions)
CLEARSTREAM 4,495EUROCLEAR 8,617DTC 1,886CRYL 111,167 CVSA 48,212
_____________________________________ Overall Total 174,378
Luis M. Corsiglia
www.cajval.sba.com.ar