Argentina’s wild success
Source: The Financial Times
By: Lucinda Elliott
Argentina’s resoundingly successful return to international capital markets this week underlines not only the size of investor appetite for the country’s unique proposition — former basket case gripped by reforming zeal, under finance ministry led by former Wall Street insiders — but the extraordinary speed at which that investor appetite has grown.
Just last month, a survey of 20 fixed income fund managers by FT Confidential Research, a unit of the Financial Times, found plenty of interest in the deal but only if, for example, the 10-year bond were to be offered with a yield of between 8 per cent and 9 per cent. In the event, the 10-year bond was issued with a yield of just 7.5 per cent.
That is well into the zone classified as “poor value” by three quarters of FTCR’s respondents.
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