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Are they saying the countries will pay their debts, or are they saying that they know that they can turn around and sell their bonds to the Fed whenever they wa
by mannerheim 6y ago
Are they saying the countries will pay their debts, or are they saying that they know that they can turn around and sell their bonds to the Fed whenever they want?
- nradov 6y agoNo everyone knows the high yield Argentinian debt is trash. The investment managers and traders buying it today think they're smart enough to offload it to some sucker before the next default. Or they expect to move on to another job before that and just don't care about what happens long term.
- mannerheim 6y agoWell, in either case, the valuations are based on the expectation that they can sell the bonds to somebody else, rather than the expectation that they will collect on the debt.