If you’re a bond investor looking for yield further out the curve, how does investing in a 100-year bond in an emerging market sound?
Argentina plans to offer just such a bond, reveals Bloomberg, reporting that the country joins Mexico, Ireland and the U.K. in selling debt that matures after more than a century. Ultra-long-term bonds are “particularly attractive to insurers and pension funds seeking to lock in long-term returns,” says the article.
For its part, Argentina is capitalizing on low borrowing costs to finance the budget and pay off debt that’s maturing in the next few years.
Last year, Argentina restored access to capital markets after a long-running dispute with creditors over a 2001 default.
Argentina’s debt now yields about four percentage points more than similar-maturity U.S. Treasurys, reports Bloomberg — less than one-third the level of just four years ago.
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