Buying Argentinian government bonds

[Lucas]

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?

July 23, 2010, 4:48 PM EDT

Bloomberg
Argentine Peso Swings Ease on Record Soybean Harvest

There you go...

 

[dennisr]

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

"Lebacs due in 112 days yielded 12.4 percent at last week’s auction, compared with 12.25 percent for 91-day notes the previous week."

Not bad if you have $38 million in spare change.
http://www.bloomberg.com/news/2010-...companies-an-invite-to-weekly-debt-sales.html

 

[A&A]

Lebacs, I think I read, are only open to banks..but now being offered to corporations as well.

I think that same Bloomberg article mentioned that cost of credit default swaps went down (meaning less expectation of default), but this changes all the time.

Bloomberg also noted that inflation is probably more near 20% compared to 9% a year ago. And peso is thought to be headed towards 4.2 by years end.

(sorry i can't post the link, i read it on my iPhone app)

 

[ghost]

July 23, 2010, 4:48 PM EDT

Bloomberg
Argentine Peso Swings Ease on Record Soybean Harvest

There you go...

Yes I saw that come over the wire days ago. Go ahead and buy them. If you like short term risk. Long term, no way, not for me. These bonds are for pros who can off load risk with a flick of the mouse. Everyone else will eat them.

 

[dennisr]

Lebacs, I think I read, are only open to banks..but now being offered to corporations as well.

I think that same Bloomberg article mentioned that cost of credit default swaps went down (meaning less expectation of default), but this changes all the time.

Bloomberg also noted that inflation is probably more near 20% compared to 9% a year ago. And peso is thought to be headed towards 4.2 by years end.

(sorry i can't post the link, i read it on my iPhone app)

The point for me is, even at this rate +12%, "Companies refrained from buying debt at the first auction they were allowed to participate in last week." Private equities were not purchasing. Kind of suggests, they are not so bullish on the Argentine economy. I would die for a US Treasury note at 12%. It is currently paying .17%. Argentina's economy defies any logic. The whole world is in a slump and the only exception being ARGENTINA. AR must be the pillar of economic success? Congratulations Christina.

 

[Agribotics]

Is buying Argentine bonds in the U.S. and selling them in Argentina still a viable way to get large sums of money into the country at favorable rates?

 

[Cordoba]

Is buying Argentine bonds in the U.S. and selling them in Argentina still a viable way to get large sums of money into the country at favorable rates?

The current rates favor cash at the moment.

 

[Ries]

Cash has always been king in Argentina, preferably US 100$ bills with the Big Heads, in perfect condition.

 

[Agribotics]

Cash has always been king in Argentina, preferably US 100$ bills with the Big Heads, in perfect condition.

But bringing cash in is limited to $10,000 USD. What do you do if you want to buy property?

 

[Cordoba]

But bringing cash in is limited to $10,000 USD. What do you do if you want to buy property?

That is just the limit before you are required to declare it. You can bring in more. Unless something has changed recently.