Argentina’s Default Is a Warning to Frothy Government Bond Markets – Wall Street Journal

Even when you leave the euro zone, where investors assume they are backstopped by an implied European Central Bank guarantee, you’ll find aggressive pricing of sovereign debt, including in high-risk “frontier” markets. In June, violence-wracked Kenya attracted $8 billion in bids for a $2 billion offering of five- and 10-year bonds, the latter selling at 6.85% yield, lower than Spain’s two years ago. Similarly sought-after deals were completed over the past year by Ecuador, Pakistan and Rwanda. Read more >>