Argentina’s lowest-priced bonds are holding up the best following the country’s default last month, Bloomberg News reported yesterday. The South American nation’s notes maturing in 2038, known as Par bonds, have lost 6.5 percent to 52.88 cents on the dollar since the government was blocked from making a payment on its debt last month. That compares with a 11.6 percent plunge on its notes due in 2033 and an 8.3 percent rout on securities that mature in 2017. While the best-case scenario for investors would be for the government to reach a deal that would allow it to resume paying the bonds, the lower-priced notes would offer better returns if that effort fails and investors instead demand that Argentina immediately repay them, according to Torino Capital LLC and Bulltick Capital Markets. In that situation, called acceleration, investors would demand 100 cents on the dollar for their securities plus past-due interest.
