Yield Hunting

Argentina is a serial defaulter.

Argentina’s most recent default, more than $80 billion, began in 2001, and was only recently fully resolved after various classes of debt holders accepted significant losses.

In April 2016 Argentina sold $16.5 billion of new dollar denominated debt ranging from three to 30 years, with a yield of 8% on the longest maturity and 7.5% on the 10 year issue.

Ten year U.S. Treasury bonds currently yield less than 2%.

All comments and suggestions are welcome.

Walter Kirchberger, CFA®