Pimco Is Dominating the Market for Argentina’s Bond That Pays 68%
- Country retapped notes linked to benchmark rate Thursday
- Pimco has been buyer in recent months, taking stake to 40%
Cars drive down Avenida 9 de Julio in Buenos Aires, Argentina.
Photographer: Victor J. Blue/BloombergThis article is for subscribers only.
Pacific Investment Management Co. is ramping up its wager on the world’s top-paying bond as Argentina sells more of the notes at government auctions.
The securities, originally issued in June 2017 and maturing in 2020, pay a floating coupon tied to the country’s benchmark interest rate, which stands at just under 68%. Pimco has increased its position in the securities by about two-thirds this year, and now owns almost 40% of the total 104 billion pesos ($2.4 billion) issue, according to the bond-fund manager’s most recent regulatory filings.