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Source: Bloomberg
By: Sebastian Boyd
04.20.2016

Investors who bought bonds in Argentina’s record-breaking salehave made $597 million in profit in just two days.

The bonds that were sold for $16.4 billion now have a market value of about $17 billion as of 12:11 p.m. in New York, according to prices compiled by Bloomberg. The notes, the first overseas debt sold by the country in 15 years, got bids from potential buyers for more than four times the amount offered, according to the government.

While the jump in prices speaks to investors’ confidence that President Mauricio Macri will succeed in his plan to bolster the economy and lure capital, it also signals that Argentina may have been able to issue at lower interest rates. The notes with maturities of three to 30 years were issued at yields ranging from 6.25 percent to 8 percent, already below average for similarly-rated countries.

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