Buying Argentinian government bonds

[dbraia]

Hi there,

Out of curiosity, besides buying property here as an investment, does anyone have experience/recommendations on buy short-term (3 months), high interest government bonds?

Thanks

 

[gouchobob]

Hi there,

Out of curiosity, besides buying property here as an investment, does anyone have experience/recommendations on buy short-term (3 months), high interest government bonds?

Thanks

I'm sure no expert but the reason the interest rates are high is that the perceived risk is also high. However, I am sure there are professional investors out there that understand these risks and when it makes sense to invest. I think looking at it as a short-term investment is the right way to go. You certainly wouldn't want them as a long term investment given the government's past history of screwing bond holders. These groups include people who lost their savings when the government defaulted the last time. Current holders of inflation indexed bonds are getting screwed again by the phony inflation stats from the government.

 

[gunt86]

it is my understanding that if you buy ARG gvmt bonds, those bonds are exempt from the annual asset tax levied on all residents. There are a few other exemptions as well...Austrian gvmt bonds I think...maybe even Italian gvmt bonds.

 

[ghost]

http://www.bloomberg.com/news/2010-...rd-soy-harvest-as-volatility-gauge-sinks.html

Here's the reason AR bonds are looking good for the moment. Short term maybe, maybe. But with the current trade disputes with China who's going to buy the soy???? Not the US [we export] not Brazil they export also.
It's a risky bet but the locals are playing it. So maybe somebody knows something.
Frankly I think it's BS and a potential for a major screwing.

 

[studiodio]

I was tempted to put some money in argentina CDs not too long ago//// the return on 6 month CD was way better than in the US.....but at that time i did not have a DNI and so i could not do the deal.....any one out there with experience in argentine CDs?

 

[Lucas]

http://www.bloomberg.com/news/2010-...rd-soy-harvest-as-volatility-gauge-sinks.html
Here's the reason AR bonds are looking good for the moment. Short term maybe, maybe.
But with the current trade disputes with China who's going to buy the soy???? .

Don't you worry about that

India

is doing it right now.

13 Jul 2010
Viswanathan, during an interview with Télam, said that India "will now become the number one country in soy import from Argentina". The diplomat also said that "we also import from Argentina, although in a lesser amount, soy, palm and sunflower oils"

 

[ghost]

Don't you worry about that

India

is doing it right now.

13 Jul 2010
Viswanathan, during an interview with Télam, said that India "will now become the number one country in soy import from Argentina". The diplomat also said that "we also import from Argentina, although in a lesser amount, soy, palm and sunflower oils"

I am not the least bit worried. Christina never misses an opportunity to miss an opportunity.
besides the topic is BONDS, buy them or don't buy them. [and why] Did you buy them?

 

[gouchobob]

Don't you worry about that

India

is doing it right now.

13 Jul 2010
Viswanathan, during an interview with Télam, said that India "will now become the number one country in soy import from Argentina". The diplomat also said that "we also import from Argentina, although in a lesser amount, soy, palm and sunflower oils"

Current soy production in Argentina is around 50 million metric tons. China has been the main customer taking an estimated 70% of the total or 35mmt. India is currently taking only 8mmt per the article linked above. Looks like there is still a big potential problem.

 

[davonz]

Current soy production in Argentina is around 50 million metric tons. China has been the main customer taking an estimated 70% of the total or 35mmt. India is currently taking only 8mmt per the article linked above. Looks like there is still a big potential problem.

I was going to say the same thing, if india is the number 1 market for argentina soy, arg is in trouble. Anyone who has traveled or lived in india must realise that soy isnt used much.

Back to topic: Arg CDs maybe look good, but are they in US$ or pesos ? If in pesos i wouldnt buy as you have no idea where the peso is going. If you think the peso is going to get stronger against the US$ and the bonds are in pesos, could be a good investment.

 

[mini]

Maybe we could start making soy plastics & soy candles. We could sell the finished products which always make more profit than the raw product. We could also make milk soap with all the extra milk.....