Kyle Bass says there’s still money to be made lending to Argentina, a deadbeat country with few peers in history. The hedge-fund manager is the latest example of international investors pursuing riches where crises over 200 years ruined most of its citizens.
The South American nation has stiffed creditors seven times since independence from Spain in 1816, and following the latest default, in 2001, Argentina has yet to work out a settlement with all its financiers. Nevertheless, Bass said he bought Argentine bonds at 55 cents on the dollar last year and has no plans to sell even as global investors say there’s an 86 percent chance Argentina will quit paying in the next five years.
