Nickname for Argentinian bonds: Mistresses

• Citi pays $600k fine for using derivatives to escape taxes
• Argentina defaulted on $95bn of debt 8 years ago - largest sovereign default in history; blamed it's problems on the IMF; ultra low interest rates are causing some investors to take a look
• IMF predicts contraction for Saudi Arabia, followed by growth. TRADE: pick up cheap oil companies on thesis worldwide demand will again rise?
• Companies buy tailored derivatives because such products precisely match the risks to be hedged and avoid messy accounting problems; in this way eliminating OTC derivatives is not the key - what is needed to avoid systemic risk is proper reporting of exposures and the reporting of transparent prices
• a weaker dollar is the right kind of recovery: shrink current account deficit, and an export-led recovery is the best growth strategy
• last year: anyone borrowing in YEN to buy AUS would have lost 45% in 3 months.
• Telefonica increased its dividend 22%. Too soon?