The Hunt for Yield Ends in Argentina
Source: The Wall Street Journal
By: Julie Wernau
The global search for yield only goes so far, and for some investors it stops in Argentina.
The South American country attracted world-wide attention in April, when the government sold $16.5 billion in bonds, more than double the previous high by an emerging-market sovereign government.
That deal, the first global debt offering for the government in 15 years, also reopened the door for corporate issuers. While some companies have sold debt over the past decade, most were effectively shut out from borrowing in global markets as the bitter standoff between the government and foreign creditors lowered the creditworthiness of the entire nation.
Argentine companies hoping to tap the same enthusiastic investor base have issued about $4 billion in international debt so far this year, according to Dealogic.
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