Take Turkeyand Argentina– the collapse of investor confidence (not to mention the subsequent vertiginous drop in their currencies and asset prices) is a welcome sign for Glenn Grossman, chief executive of independent investment bank Dinosaur Securities.
Grossman has extensive experience of Argentina in particular, and was responsible for opening Cantor Fitzgerald’s Buenos Aires office when he was the firm’s head of international operations (covering Europe, South America, Africa and Asia).
Now he is looking to take Dinosaur, established in 2001, into Argentina just when others retreat: “If things are going swimmingly (in an EM), I would be stepped on in the stampede rushing into the country.”
'Take off your sunglasses'
He says the merchant arm of the bank recently closed a trade financing deal with an Argentine company and is looking at other opportunities in the country.
He is convinced that Argentina is a “good long-term bet” but that you have to “take off your sunglasses” in EM to avoid mistakes – and risks.
He recalls having lunch with an Argentine minister finance from the early 2000s. Grossman brought up the problem of corruption.
“Corruption is not itself the problem,” the minister said.