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Argentina’s First Bond Issuance In 15 Years Is Already Nearly 3x Oversubscribed
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Tyler Durden / 04/18/2016 11:31
Almost exactly two years ago, in April 2014, Greece issued €2.5 billion in 5 year bond yielding around 5%, which was met with huge investor interest and ended up being 8x oversubscribed. Fast forward to today when another former shutout from global bond markets, Argentina, is in the FT’s words, “on the cusp of one of the most anticipated comebacks in recent history, as the Latin American country ends a 15-year exile from the international debt market with a multibillion-dollar sale.”
According to the FT, “initial pricing puts the yield on new 10-year debt at 8 per cent, with shorter dated three and five-year bonds yielding 6.75 per cent and 7.5 per cent respectively. Its 30-year bond is slated to yield 8.85 per cent.”
As a reminder, the Latin American country has been locked out of global debt markets since defaulting on close to $100bn in 2001 while in the midst of recession. “The government’s subsequent battle with creditors who refused to accept a restructuring deal, including a fund managed by Paul Singer’s Elliott Management, led to a lengthy and rancorous fight in international courts that sparked a global effort to redesign the way that countries borrow money.”
Argentina then officially redefaulted in 2014 as a result of its ongoing legal feud which prevent the country from repaying both normal creditors as well as holdouts.
The post Argentina’s First Bond Issuance In 15 Years Is Already Nearly 3x Oversubscribed appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/04/18/argentinas-first-bond-issuance-in-15-years-is-already-nearly-3x-oversubscribed/
