Do Cry For Argentina: It’s Not Borrowing Its Way To Prosperity….Again!

For Argentina, it started with a bang. On April 19, 2016, for the first time in a decade and a half the nation was able to source global bonds. The legacy of old default was finally put behind, and a then-record (for EM’s) $16.5 billion was floated to equally impressive demand. In this day and age, there is no memory when a few hundred additional basis points in yield are in line.

Having reestablished this “dollar” conduit, Argentina has been back several times more. This past June, they even managed to sell $2.75 billion of a 100-year bond. As if the country weren’t some dangerous credit, brokers booked about $10 billion in orders for that sale.