Tuesday, April 19, 2016


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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