Is Argentina's 100-Year Bond An "I'll Be Gone, You'll Be Gone" Trade?

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Mark Melin
Published on
Updated on

It seems like yield-starved investors have failed to translate meaningful messages from the failed Petrobras 100-year bond. In a nation just to the east of Brazil, Argentina, perhaps best known to bond market traders for it peculiar debt fight with activist fund manager Paul Singer, just sold $2.75 billion of debt that matures in 100 years. The Argentina 100-year bond offering was oversubscribed by nearly $7 billion, Reuters first reported.  The bond issuer possesses a history of defaulting on debt — it defaulted seven times in the last ten years alone, according to Bloomberg — and engaged engaging in bitter…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.