With a history of defaulting on its debt, it would be natural for investors to proceed with caution with Argentina. But that’s not the case.
Being hungry for yield-related assets is one thing. Throwing all caution to the wind when seeking yield is another.
While many are calling for concern over rising bond prices, based on the data, this isn’t something to be alarmed about.
The Fed is allowing big banks to treat municipal bonds as safe, high-quality assets for emergency reserves. But once you’ve read up on Ramapo, New York, “safe” no longer comes to mind.
Investing should be fun and beneficial, and usually that’s the case. But every so often, there comes an opportunity that’s just not worth the risk…