GD41D
🗽 GD41 offers exposure to Argentine sovereign debt under New York Law and includes Indenture 2005 protections, features not universally present in other globals.
💲 Despite potentially superior legal protections, GD41 has traded cheaper (lower price/higher yield) than its Ley Local equivalent (AL41), presenting a potential value opportunity.
📉 Compared to GD35, GD41 is preferred due to factors like earlier amortization, Indenture 2005, and lower initial parity, potentially offering better recovery in adverse scenarios despite a weaker coupon.
@ClaveBursatilTV:
“GD41 to AL41, where the GD41, foreign law, is cheaper than local law. Crazy. Being Indenture 2005 and New York Law, beyond the fact that the GD41 coupon, yes, really is a bit, a bit much weaker than the 38’s, but in terms of potential price appreciation, we were very similar. That’s why I leaned towards the GD41 as an option, yes, to have in the portfolio… Let’s look at sensitivity… GD41… What happens? This one has an advantage the other two don’t: Indenture 2005. Yes. And it has an advantage this one doesn’t, this one does: New York Law. So I said, well, I more or less cover it that way… If they go to 7% TIR… GD41 wins there… That’s why GD41, AE38 seems like a good combo. That’s why they bust my chops so much, Tincho, with the GD35. All the time, but the reality is I don’t like the GD35 because it lags behind. It always lags behind in any simulation. See? With 7 or 8 TIR, the GD35 has less upside than the other two. It has less coupon than the 41… no, it has more coupon, but the 41 starts paying amortization earlier and is Indenture 2005. So, it wins 2 to 1, 3 to 1 because it has lower parity in case things go wrong and the government defaults and the others return. For me, the parity we buy at is very important. Watch out. Yes, because then the NPV, the net present value, if the worst happens, will change according to the bond they give us. But what if they put all the bonds in the same basket like last time? That the one with Pari, the one with Dica, Dizy, more or less received the same percentage of bonds. Check it out. See that it was like that. Yes. So it will be very important for me to enter at a low parity. The low parity today is held by the 41. In part, I understand it has it because the coupon is weaker than the others, obviously, nobody gives you anything for free. But in that scenario, when I do the GD41 vs. GD35 comparison, the GD41 wins. Yes, 3 to 1. There are four things I look at in a bond. I can add the TIR here, the 35 wins. Well, 3 to 2, the 41 still won. Yes, that’s why I don’t… that’s why I don’t like the 35.”
Watch the exact part of the video where @ClaveBursatilTV talks about Bono Global República Argentina 2041 Ley NY here:
Watch the video on YouTube
Read more articles analyzing Bono Global República Argentina 2041 (GD41D) at the provided link. GD41D stock.
