GD29
🇦🇷 Allocate 30% to Argentine bonds, specifically GD30 and GD29, for high yield.
💰 These bonds offer a 12% annualized yield due to amortization and discount on par.
💵 Combined with Petrobras, this strategy targets a 10% portfolio dividend yield.
📈 Monitor Argentina’s fiscal surplus monthly to ensure bond viability.
@Academiadeinversion:
“I would put another 30% in bonds, high-yield bonds in the medium to long term, or even in Argentine bonds. I would look for bonds that for some reason had one like the klxe, for example, that was paying you 12% annualized in coupon, or bonds like the nfe that was paying you, it was paying you 8% in coupon. But since you are buying it below par, it is giving you a dividend yield of 10, 12. Or, if you don’t want to put so much there, I would get into Argentine bonds. And I would buy the gd30 and the gd29 if you want more cash flow. And if you want revaluation, I would buy the gd41. Why the gd30 and the gd29? Because those bonds, with the amortization, the discount on par that they have, and the amortization that they are making, are generating 12% annualized. If in my portfolio, as I have put a weight of 30%, it is generating 4% of the portfolio, plus 6% of the portfolio that Petrobras was generating, I already have 10% of the portfolio in dividend yield each year with those two-thirds. Argentina, as it was very bad, was asked to amortize before the end, before the end of the term. So, a few years before, it already begins to amortize. For example, I am looking right now at the gd30 bond. I don’t like the gd29 better; the gd29 pays a little more. The gd29 is paying you 10 amortization and 0.45 coupon. Uh, as you are buying it below par, every time it returns 10 to you, the difference between the price you buy and the par, that is, if you buy it, imagine at 0, and as the par is 100, that 20%. And as they are returning 10 to you, 2 of that 10% is what you are getting in profitability. And that’s why the dividend yield is so high. You pay, and they are going to give you x money, and the money they give you, it matters little to you if it is amortization or interest, as an investor. In the end, it’s money. That is, what you receive is the same.”
Watch the exact part of the video where Mr. Timbits talks about Argentine Bonds here:
View the video on YouTube.
Read more articles featuring the most recent analysis of Argentine Bonds (GD29) at this link: GD29 stock.
