Junk-Rated El Salvador’s ‘Bitcoin Bonds’ Look Explosive (Think Volcano)

Posted on by American Coins & Gold

Junk-Rated El Salvador’s ‘Bitcoin Bonds’ Look Explosive (Think Volcano)
While El Salvador’s new bitcoin-linked bond may be one of the highest-yielding fixed-income instruments globally, it might turn out to be riskier than the country’s outstanding government bonds, which are already categorized as junk-grade.Some experts said the new offering might struggle to attract investors, especially since the bond appears to pay interest at a lower rate than the country’s conventional dollar-denominated bonds.El Salvadorian President Nayib Bukele announced the plans on Saturday to issue a $1 billion “Bitcoin Bond” with a 10-year maturity on the Liquid Network. Half of the money raised will be used to purchase bitcoin, and the rest…