| Argentina's domestic capital market has rarely looked so healthy, with 1998 set to be a banner year for new issues. The government is extending its successful programme of treasury bond auctions, a large number of corporates are launching bond offerings and there is likely to be heavy issuance into the local equity market. Such a high level of activity could hardly have been imagined only a few years ago, when the local Argentine markets were just beginning to stabilize, and were recovering from the era of hyperinflation which had all but wiped out domestic savings. But progress has been more rapid than anyone had dared predict, and the pool of domestic money looking for fixed-income and equity investments is now providing an important complement to strong demand from international investors for Argentine assets. Leading the way are the local pension funds (administradoras de fondos de jubilaciones y pensiones - AFJPs) which now have $8 billion in total assets under management. More surprising than the well documented rise of the AFJPs has been the sudden emergence of the mutual fund sector, which during 1997 has become an important part of the investor base. |