Argentine dollar sovereigns · guided tour
AO29 vs AL29: bullet vs amortizing
Both are Treasury dollar bonds under Argentine law maturing in 2029. What sets them apart is how they repay principal: AO29 pays it in full on October 31, 2029 and meanwhile pays a 6% annual coupon in monthly payments; AL29 repays it in ten semiannual installments that started in January 2025, with a fixed 1% coupon.
What you would put in each bond: the steps turn it into face value at the current price.
Data as of Oct 30, 2026 · settlement Nov 2, 2026
Step 1 of 7
What each bond buys you
AO29 repays the whole principal on Oct 31, 2029 and, meanwhile, pays 0.5% a month. AL29 repays principal in semiannual installments through Jul 9, 2029 and pays 1% a year on what remains; it has already repaid 40%.
AO29
National Treasury Bond in US dollars 6% due October 31, 2029
- Issuer
- Argentine Republic (National Treasury)
- Governing law
- Argentine law
- Source document
- Resolución Conjunta 44/2026
- Payment currency
- US dollars
- Coupon
- 6% annual · monthly
- Repayment
- In full at maturity
- Issued
- Jul 17, 2026
- Maturity
- Oct 31, 2029
- Principal already repaid
- 0%
- Collective action clauses
- No
AL29
Republic of Argentina 1% USD Bonds due 2029 (Argentine law)
- Issuer
- Argentine Republic (National Treasury)
- Governing law
- Argentine law
- Source document
- Ley 27.556 y Decreto 676/2020, Anexo IV
- Payment currency
- US dollars
- Coupon
- 1% annual · semiannual
- Repayment
- 10 semiannual installments
- Issued
- Sep 4, 2020
- Maturity
- Jul 9, 2029
- Principal already repaid
- 40%
- Collective action clauses
- No
Step 2 of 7
The cash flows, side by side
With USD 1,000 you buy 1,220 face value of AO29 and 1,857 face value of AL29. AO29 pays you USD 1,439 in 36 payments through Oct 31, 2029; AL29, USD 1,134 in 6 payments through Jul 9, 2029.
AO29
- Face value you buy
- 1,220 face value
- Total to collect
- USD 1,439
- Average life
- 3.00 years
- Next payment
- Nov 30, 2026 · USD 6.10
AL29
- Face value you buy
- 1,857 face value
- Total to collect
- USD 1,134
- Average life
- 1.44 years
- Next payment
- Jan 9, 2027 · USD 191.27
- Coupon
- Principal
See the cash flows date by date
| Date | Coupon | Principal | Outstanding after | Total |
|---|---|---|---|---|
| Nov 30, 2026 | 0.50 | 0.00 | 100.00 | 0.50 |
| Dec 30, 2026 | 0.50 | 0.00 | 100.00 | 0.50 |
| Jan 29, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| Feb 26, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| Mar 31, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| Apr 30, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| May 31, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| Jun 30, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| Jul 30, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| Aug 31, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| Sep 30, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| Oct 29, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| Nov 30, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| Dec 30, 2027 | 0.50 | 0.00 | 100.00 | 0.50 |
| Jan 31, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| Feb 29, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| Mar 31, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| Apr 28, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| May 31, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| Jun 30, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| Jul 31, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| Aug 31, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| Sep 29, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| Oct 31, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| Nov 30, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| Dec 29, 2028 | 0.50 | 0.00 | 100.00 | 0.50 |
| Jan 31, 2029 | 0.50 | 0.00 | 100.00 | 0.50 |
| Feb 28, 2029 | 0.50 | 0.00 | 100.00 | 0.50 |
| Mar 28, 2029 | 0.50 | 0.00 | 100.00 | 0.50 |
| Apr 30, 2029 | 0.50 | 0.00 | 100.00 | 0.50 |
| May 31, 2029 | 0.50 | 0.00 | 100.00 | 0.50 |
| Jun 29, 2029 | 0.50 | 0.00 | 100.00 | 0.50 |
| Jul 31, 2029 | 0.50 | 0.00 | 100.00 | 0.50 |
| Aug 31, 2029 | 0.50 | 0.00 | 100.00 | 0.50 |
| Sep 28, 2029 | 0.50 | 0.00 | 100.00 | 0.50 |
| Oct 31, 2029 | 0.50 | 100.00 | 0.00 | 100.50 |
| Date | Coupon | Principal | Outstanding after | Total |
|---|---|---|---|---|
| Jan 9, 2027 | 0.30 | 10.00 | 50.00 | 10.30 |
| Jul 9, 2027 | 0.25 | 10.00 | 40.00 | 10.25 |
| Jan 9, 2028 | 0.20 | 10.00 | 30.00 | 10.20 |
| Jul 9, 2028 | 0.15 | 10.00 | 20.00 | 10.15 |
| Jan 9, 2029 | 0.10 | 10.00 | 10.00 | 10.10 |
| Jul 9, 2029 | 0.05 | 10.00 | 0.00 | 10.05 |
How it is computed
Each cash flow is coupon plus principal per 100 of original face value. The coupon accrues on the outstanding principal, at the current rate and on a 30/360 basis. To scale to your amount: face value = amount / (price / 100), and each flow is multiplied by face value / 100. Average life weights each principal payment by the years until it is paid. Dates are the ones set in each bond's terms (for AO27, AO28 and AO29, the ones their resolution lists month by month): payment is made on that date or the next business day if it falls on a non-business day, and the comparator shows the date in the terms, without that adjustment.
Step 3 of 7
Price, yield and parity
AO29 trades at 81.98 per 100 of original face value and still has 100.00 of principal to repay: its parity is 0.82. AL29 trades at 53.85 with 60.00 outstanding (parity 0.89). The yield is the rate that equates that price with the remaining cash flows: 14.18% for AO29 and 9.41% for AL29.
| Price, yield and parity | AO29 | AL29 |
|---|---|---|
| Dirty price (today) | 81.98 | 53.85 |
| Accrued interest | 0.03 | 0.19 |
| Clean price | 81.95 | 53.66 |
| Technical value | 100.03 | 60.19 |
| Parity | 0.82 | 0.89 |
| Yield (IRR) | 14.18% | 9.41% |
How it is computed
The quoted price is dirty: it includes the interest accrued since the last coupon. The accrued figure is the comparator's own 30/360 calculation from the last coupon: it may differ from the one your broker or another source reports. Clean price = dirty − accrued. Technical value = outstanding principal + accrued. Parity = dirty price / technical value: below 1, the bond trades under what it would pay if it were redeemed today. The yield (the y in the formula) is the effective annual rate that solves price = Σ flow / (1 + y)^t, with t in 365-day years from settlement (the business day after the data date).
The sum with the first two cash flows:
AO29: 81.98 = 0.50 / (1 + 0.1418)^0.077 + 0.50 / (1 + 0.1418)^0.159 + …
AL29: 53.85 = 10.30 / (1 + 0.0941)^0.186 + 10.25 / (1 + 0.0941)^0.682 + …
Step 4 of 7
Duration: how much the price moves
If the yield rises 1 point, AO29 falls about 2.4% and AL29, 1.2%: that is what modified duration measures. Macaulay duration is the average time until you get paid: 2.72 years for AO29 and 1.36 for AL29.
| Duration: how much the price moves | AO29 | AL29 |
|---|---|---|
| Macaulay duration | 2.72 years | 1.36 years |
| Modified duration | 2.38 | 1.25 |
Price at that yield (per 100 of original face value)
- AO29
- 81.98
- AL29
- 53.85
Move the yield to see how the price of each bond changes.
- AO29
- AL29
- exact curve
- duration line
| Convexity | AO29 | AL29 |
|---|---|---|
| Convexity | 8.12 | 3.30 |
How it is computed
Macaulay = Σ t · PV(flow) / price, in years. Modified = Macaulay / (1 + yield): the percentage price change per point of yield. Convexity = Σ t (t + 1) · PV(flow) / (price · (1 + yield)²): it corrects the line, because the price rises more than the line predicts when rates fall and drops less when they rise. Other sources compute modified duration with semiannual or monthly compounding, Macaulay / (1 + yield / f) with f = 2 or 12, and publish a different number.
Step 5 of 7
Repayment: when the principal comes back
AO29 returns its principal, on average, in 3.0 years; AL29, in 1.4 years. The sooner the principal comes back, the less your result depends on the price you can sell at later. The yield gap between the two also reflects effective term, liquidity and new Treasury supply.
- AO29: cash received exceeds the price paid on Oct 31, 2029.
- AL29: cash received exceeds the price paid on Jul 9, 2029.
How it is computed
The staircase shows the principal still owed per 100 original face value after each amortization. Average life weights each amortization by the years until it is paid. The payback point is the first date on which coupons and amortizations received from today equal or exceed the current dirty price, without reinvesting.
Step 6 of 7
What the governing law changes
AO29 and AL29 share the same governing law (Argentine): the yield gap does not come from there. To see the law premium, this step compares AL29 with its New York law twin, GD29: 173 bp today.
- New York law twin
- AL29 → GD29
- Law premium today
- 173 bp
- 2002 · Decree 471/2002 converted into pesos, at 1.40 per dollar plus CER inflation, the public sector dollar debts governed solely by Argentine law; the Supreme Court upheld it in the Galli case (2005). Foreign law debt was outside that decree. Source
- 2001-2016 · December 2001 default, 2005 and 2010 exchanges and the holdout litigation in New York: in 2014 the US Supreme Court declined to review the pari passu ruling, allowed discovery of Argentine assets and payments were blocked; in 2016 Law 27,249 repealed the lock law and the holdouts who accepted the settlement were paid. New York law let creditors sue and collect abroad, years later. Source
- 2019 · Decree 596/2019 deferred by decree the payments on Letes, Lecap, Lecer and Lelink, short-term Argentine law debt, except for holdings of individuals registered on July 31, 2019 and kept until the payment date; foreign law bonds were not touched. Source
- 2020 · Law 27,544 (February 2020) enabled the foreign law exchange; in April, Decree 346/2020 deferred by decree the payments on dollar bonds under Argentine law, and in August Law 27,556 enabled the local law exchange, with the same improved offer for both: 93.55% participation abroad (99.01% amended through the collective action clauses) and 99.41% in the local exchange. Same final treatment, different path. Source
- 2020 · A New York law bond is a contract with a trustee and with New York courts for litigation (2016 Indenture). A Bonar is a security issued under Argentine statute and decree, which Congress or the Executive can amend. Source
- 2020 · The 2020 Globales can be amended with more than 75% of a series, or across series with more than 66⅔% in aggregate and more than 50% of each, or with more than 75% in aggregate if the offer is uniform; they limit series redesignation and include a clause against the Pac-Man tactic. The 2020 exchange Bonares carry no collective action clauses: Annex IV of Decree 676/2020 does not provide for them. Nor do the joint resolutions of the new Bonares: 62/2025 (AN29), 11/2026 (AO27), 16/2026 (AO28) and 44/2026 (AO29). Source
- 2023 · Decree 164/2023 required public agencies to sell their Bonares and to hand their Globales to the Treasury in exchange for a 2036 dual bond: different treatment depending on the governing law. Source
- Today · The financial press reads the yield gap between twins as the premium the market demands for Argentine law, tied to restructuring risk, political uncertainty and liquidity. In October 2026 published readings ranged from 146 to 270 bp depending on source and time of day; this step shows the reading of the day, from our own calculations on the same prices as the sovereign curve. Source
What changes in a default. Under New York law claims can be litigated in New York courts and the terms change only with bondholder majorities (collective action clauses). Under Argentine law, Congress or the Executive can change the terms by statute or decree, as in 2002, 2019 and 2020.
How it is computed
Spread = (Argentine law bond yield − New York law bond yield) × 10,000, in basis points, with both bonds computed by the same engine on identical cash flows. It is the reading of the day, not a historical average.
Step 7 of 7
The pair at a glance
Six rows to compare AO29 and AL29. Neither is better in the abstract: it depends on what you are after.
| The pair at a glance | AO29 | AL29 |
|---|---|---|
| Law | Argentine law | Argentine law |
| Coupon | 6.00% annual · monthly | 1.00% annual · semiannual |
| Repayment | In full at maturity · Oct 31, 2029 | In installments · Jul 9, 2029 |
| Yield | 14.18% | 9.41% |
| Modified duration | 2.38 | 1.25 |
| Parity | 0.82 | 0.89 |
- Law
- On this row the two are the same.
- Coupon
- For current income: AO29 pays the higher coupon.
- Repayment
- To get principal back sooner: AL29 returns it earlier.
- Modified duration
- For less rate sensitivity: AL29 moves less.
How it is computed
Yield and modified duration come from the current dirty price and the cash flows to maturity; parity is the dirty price over technical value: outstanding principal plus accrued interest.
Scenarios
Mechanical scenarios, not a forecast
| Holding period | AO29 | AL29 |
|---|---|---|
| Collected until exit | 6.00 | 20.55 |
| Exit price | 87.22 | 37.29 |
| Total return without reinvesting | +13.71% | +7.40% |
| Total return reinvesting what you collect | +14.18% | +9.41% |
Assumption: you sell on Nov 2, 2027 at the current yield of each bond; with reinvestment, what you collect earns that same yield until exit.
Cash flows held to maturity, a single rate for the whole term, no taxes or fees.
Ready-made comparisons
General analytical information. Not investment advice or a recommendation.
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