Marcos Brindicci/Getty ImagesThe International Monetary Fund’s biggest junk bond is on the cusp of getting even junkier, leaving investors who bought Argentina bonds a year ago under then president Mauricio Macri holding a bag of dust. His biggest claim to fame was bringing the IMF back to Argentina, bigger than ever, with a hefty $56 billion unpayable loan. Distressed asset investors are loving the deep discounts on Argentina debt, hoping the IMF won’t let Argentina default and will extend maturities beyond 2023 when they are due. “This looks like a worst-case scenario,” says Morden about the unfolding Fernandez team. In 2017, foreign investors spent $2.75 billion on Argentina’s Century Bond, a 100-year maturity paying a little under 8% interest.

Source: Forbes December 06, 2019 13:30 UTC