Financial News

On Argentine long bond, question is not if, but when?

On Argentine long bond, question is not if, but when?

Argentina has re-entered the global bond market with a bang, $2.75 billion of a 100 year bond… The 7.125s of 2117 were issued at 90c to yield 7.917%… 100 year issues are rare, even rarer when rated B3… Argentina has been in default during 38% of its 200 year history, so this bond is almost certain to default sometime in its life… The question is whether the significant current coupon outweighs that risk… Also an illustration that the market’s memory is short…

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