Argentina Hands 135% Return to Bondholders Who Braved Crises
- Boden bonds have outperformed 93% return in emerging markets
- The $5.7 billion of debt sold after 2001 default mature Monday
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Investors who bought Argentina’s bonds in the aftermath of its 2001 default and had the stomach to hold on for the next decade are about to be rewarded with a 135 percent return when the securities pay out next week, according to Bank of America Corp.
The $5.7 billion of 10-year notes will be paid off Monday, according to Economy Minister Axel Kicillof, handing investors more than the average 93 percent gain for emerging markets, after years of turmoil generated by lawsuits with creditors, a plummeting currency, soaring inflation and a government that allied itself with Hugo Chavez. When things looked diciest, Venezuela’s socialist president even stepped in to buy a portion of the notes to aide Argentina.