Wipeout in Argentina Has Some Investors Sensing an Opportunity

Argentine assets have tumbled so far, so fast that a few stout-hearted investors say it might be time to buy, Bloomberg News reported. “Find me a high-yield sovereign country with an IMF program paying so generously,” said Jean-Dominique Butikofer, the Atlanta-based head of emerging-market fixed income at Voya Investment Management, which oversees about $205 billion. “We can agree on the growth outlook, inflation running unexpectedly out of control, the debt dynamic after currency depreciation and worrying technicals. But at these levels, value has been created.” He means numbers like these: 16.2 percent on dollar bonds maturing in three years or, better yet, 17.8 percent on bonds due in two. Read more

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