Mighty_Dragon_Strike
Trusted Member
I would agree with you as all private markets are fixed but the point I am trying to make is that this is the international bond market with a govt. issue, there are no balance sheets to befuddle or play with your P&L-either the country pays or they go the Argentina route.
I would prefer the Argentinian way if the government had balls
interest rates determination for L/C, bec, these issues determine the first price/spread to be determined by any bank or importer (risk aversion and factor premiums)
Further, given our borrowings position (which are not based on shortfalls but are rather 'deficits') even a reduction in borrowings will lead to more volatile interest rates and short term prices!
this is relevant bec, issuer on our side, knows how to tweak all rates (short term rates and inflation rates!)






