Economics
What Negative Yields? Defaulted Bond Has World's Top Returns
- Mozambique’s Eurobond hands investors 15% return this month
- Anadarko’s $20 billion plan vindicates bets on gas bonanza
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In a world replete with negative-yielding assets, some investors have made 15% in less than three weeks betting that an African country in default is about to come into a lot of gas money.
This month’s rally in Mozambique’s sole dollar bond comes after the government proposed a restructuring deal at the end of May that should see coupons, which Mozambique stopped paying in early 2017, restarted later this year. For investors who swallowed the diluted terms and bought the bond, vindication has just come in the form of Anadarko Petroleum Corp.’s plan to spend at least $20 billion to develop some of the country’s gas reserves.