As US regulators look to replace references to credit
ratings in their rulemaking, Argentine pension funds have
already been making investments using alternative means of
analysis, including reports from local universities.
But while Argentina’s regulators insist the
selection process is thorough, financial attorneys have their
doubts that the system operates exactly as intended.
"With the combination of no rating plus the political criteria
for investment, the government ends up making investments the
private sector would not have made," said Bruchou
Fernández Madero & Lombardi partner Hugo
When the pension funds were nationalised in 2008, the rules
governing investment were changed to encourage...