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Argentina Bond Sale Just Too Good to Pass Up, Defaults Be Damned

  • Country sold an emerging-market record $16.5 billion of debt
  • Sale marks turnaround as country leaves behind pariah status
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Amundi's Strigo: Why Argentina Debt Is a Good Buy

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The most surprising thing about Argentina’s record bond sale isn’t that it issued $16.5 billion of debt while still in default. It’s that the country could have sold even more.

The bonds rallied in early trading, signaling strong investor demand and a turnaround in sentiment after Argentina’s $95 billion default in 2001 set off more than a decade of litigation and isolation from global capital markets. Finance Minister Alfonso Prat-Gay couldn’t help gloating a bit, telling reporters that with orders from more than 600 investors he could have easily issued double the amount.