100% Yields on Ecuador Bonds: A Sign of the Times [View article]
Interesting article. I see a great profit opportunity for emerging market countries, if they learn how to play smart with their debts. First emerging market countries like Ecuador manage to sell as much debt as possible when times are good, by locking in low long-term interest rates. Then they just wait for the next global crisis and then they default on investors, sending the bonds to super low levels..
If they have 2 billion on hand, why can't they ( at least theoretically) simply purchase these bonds.. And reduce their debts forever?
-
Interesting article. I see a great profit opportunity for emerging market countries, if they learn how to play smart with their debts. First emerging market countries like Ecuador manage to sell as much debt as possible when times are good, by locking in low long-term interest rates. Then they just wait for the next global crisis and then they default on investors, sending the bonds to super low levels..
Nov 18 11:30 am
|Rating:
0
0
All Comments by Dividend Growth Investor »100% Yields on Ecuador Bonds: A Sign of the Times [View article]
If they have 2 billion on hand, why can't they ( at least theoretically) simply purchase these bonds.. And reduce their debts forever?