Safer local bonds worth $1.5bn lure investors amid sovereign carnage

As Argentina descends into a hellscape for creditors, investors are finding opportunities in some provincial and municipal notes selling at small discounts to their face value and spitting out rich coupons in a world of near-zero yields. Local governments owe $1.5 billion in debt obligations in 2020. “But the financial woes forcing the federal government to seek a restructuring don’t apply equally to all the country’s issuers, creating some diamonds in the rough paying fatter yields than they would if the borrower was outside of Argentina,” Oren Barack, the managing director of fixed income at New York-based AGP Alliance Global Partners says.

Source: Bloomberg