OK. This is the end. The final results of the Argentine Adventure are as follows:
Final Amount: $16.5 Billion
Tranches.... 2.75 billion for 3 years @ 6.25%
4.50 billion for 5 years @ 6.875%
6.50 billion for 10 years @ 7.50%
2.75 billion for 30 years @ 8.00%
I have nothing further as to the average life, if any, of the longer tranches nor as to whether the last number is a coupon or the yield.
Apparently, the book was $70 billion at the close.
I think it was a success.
There have been questions raised as to who would "invest" in a credit such as this? The answer is that an "investment" these days is anything over 1 day duration. The traders have won. Everybody is a trader...even the widows and orphans for whom their money is invested by those wonderful people called "wealth managers." You have been warned but don't worry, be happy. I mean, like, it's an eight per-center, Dude! Think you have a problem? Look at Goldman. Reported really stinko numbers today because of a lack of trading revenue. And out comes this $16.5 billion beauty, that they can't go near--can't use their own capital to REALLY trade it. How ticked off do you think they are?! Especially given that Blackrock can...being private. Of course with just $5 trillion under management, no systemic risk there. I wonder...
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