“Default Jitters Mount in Argentina as Local Yields Top 70%”

“…A government bond auction scheduled for Tuesday will provide a look at just how acute the crunch has become. The government is looking to sell some 250 billion pesos ($2 billion) of inflation-linked notes and other securities. Demand has sagged at recent auctions, and yields on the notes have soared above 12% in secondary-market trading, providing an all-in rate of more than 70% at current inflation rates.

At the same time, demand for dollars is surging, sinking the parallel peso to record lows almost daily, in a clear sign that investors are redeeming their bonds and whisking the cash offshore.

All of this is catching the attention of Argentina’s foreign bondholders, too. The government has no major payments due on those bonds for years, but still investors are getting anxious, pushing down the price on benchmark securities to just 23 cents on the dollar. At that price, they yield 21%, making the country one of almost two dozen emerging-market nations that has now sunk deep into distressed territory — a level that signals investors are starting to brace for the possibility of default. This is old hat by now for Argentine creditors. The country has defaulted on its foreign bonds three times this century, most recently in a 2020 restructuring deal that gave investors just over 50 cents on the dollar…”

https://finance.yahoo.com/news/default-jitters-mount-argentina-local-110000265.html

Quit borrowing money. It’s that simple. Then you won’t have to worry about defaults.