Just a year after returning to international markets to collect debt and after leaving the financial 'default' and settling the disputes for this debt, Argentina surprises now with its plans to issue 100-year bonds with an annual return of 8.25%. Funny thing is that, it's buyers, mostly pension funds, will be fighting to the hold of such bonds. This is the era in which we live in, the era of financial repression, imposed by the Central Banks, which causes investors to buy anything that shows a minimal decent profitability.
Citi, HSBC, Nomura and Santander will be the placing banks.
Needless to say 100 years are a lot of years, specially taking into account the country's track record defaulting its sovereign debt, accumulating 6 defaults in the last 100 years. So in keeping with its history, I do not know if 100-year Argentine bond buyers will get much return on their investment but what if it seems certain is that in the next 100 years they will be busy and entertained.
Now, the fact that a country is allowed to issue debt that will have to paid back not only by the country's children but also the grandchildren, leaves room for some ethical thought. Will Argentina repeat the same mistakes over again?