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Well, at 8%, you double your money every 9 years, so isn't this just an over/under at 9 years for the next default? Seems reasonable to me
by curiousllama 4y ago
Well, at 8%, you double your money every 9 years, so isn't this just an over/under at 9 years for the next default? Seems reasonable to me
- incompatible 4y agoAfter 9 years, you'll get your money back, but without any return. If they last 11 or 12 years, and since it's paid in US dollars, you'd get a little return on the investment. The question is whether they'll continue paying out for 12 years. But my point is more that investors haven't blacklisted them forever, just because of prior defaults. I don't know whether the interest on this particular bond is still being paid at the quoted rate, or if it was "restructured", since they did default again in 2020: https://www.dw.com/en/argentina-in-default-for-second-time-this-century/a-53542302 https://www.dw.com/en/argentina-in-default-for-second-time-t...