- We've lost track of the number of times Argentina has defaulted on its debt over the last century, and it's only a year since the country just settled lawsuits on its most recent $95B default.
- That didn't stop investors this week from gobbling up $2.75B in 100-year bonds reportedly price to yield 7.91%.
- The sale comes after a major capital markets turnaround for Argentina over the past year, with the country's debt now yielding an average of just 400 basis points more than similar-maturity Treasurys (it was well over 1000 bps four years ago).
- The sale also comes amid a very hot run for emerging market debt in which prices have gone up and funds have added $38.6B during 20 straight weeks of inflows.
- Source: Charlie Devereux and Ben Bartenstein in Bloomberg
- ETFs: EMB, PCY, ARGT, EDF, TEI, EDI, EDD, EMLC, ELD, VWOB, EMD, MSD, GHI, LEMB, SBW, EMAG, EBND, EMSH, FEMB, EMIH, EMTL, EMBH, IGEM
- Now read: Introducing The Weekly Fund Spotlight: 13% Yield From This Emerging Market Bond CEF
Original article