GDP coupons the best of 2006

GDP coupon in dollars was the best investment of 2006, offering 166.8-per cent profits. This is equivalent to 165 per cent in dollars, since the American currency has barely risen 1.31 per cent in the year. Coupons in Argentine pesos followed them closely with 156.80 per cent. These derivatives have been traded separately from swap bonds (to which they are attached) since December 2005. Last year, they had zero technical value, but, as they adjust with economy growth, they soon attracted investors.

Among debt swap papers, Par in dollars, though far from coupons, stood out as the best investment with 65-per cent profits.

Stocks, thanks to rebound during the last period of the year, were another good alternative by rising 35 per cent. Debt bonds dominated ranking and their profits were high, although they are overshadowed by strong coupon rates.

Boost

Argentine papers had a good beginning in 2006, but, after April, they slowed down to recover during the three last months of the year.

Dollar went unnoticed in view of euro rise (14 per cent), while gold offer 22.70-per cent profits.

Time deposit managed to defend itself from inflation with profits of almost 10 per cent in the year.

Quasi-Par bond rising 12.76 per cent was the best investment of December and made happy those discovering it. Overall issue of this bond in Argentine pesos (indexing by CER and falling due in 2045) was in the hands of Retirement and Pension Funds Administrative Bureaus (AFJP). With price boom, they started to trade it, becoming the bond rising the most during the last month of the year.

December

GDP coupons in Argentine pesos and in dollars followed them very closely, rising almost 11 per cent.

Traditional swap bonds continue firm. Par in dollars leaped almost 10 per cent and Discount in Argentine pesos a little more than 7 per cent.

Stocks also had an excellent run. Leading stock average, Merval, climbed 6.25 per cent. On Thursday, this index grew 0.05 per cent, settling at the maximum level of history. This is the fifth record broke in the month.

What happened with Pampa Holding is surprising, which increased 36 per cent. This group seeks investors in stock market for real estate development. Transener follows with 18-per cent profits and finally, we find Banco Galicia with 16.73 per cent.

Post-default bonds in dollars rose less than 3 per cent, while post-default in Argentine pesos went unnoticed.

Dollar remained at the same levels, while euro slid 0.10 per cent and gold retreated 2 per cent.