@alvespina's Threads
The 3yr Petrobonos issued by Mexico in 1977. Worth $78b 2018 dollars. At maturity to be redeemed for max between bond face value and market value of oil (1000 peso bond linked to 1.95354 barrels). Oil prices increased 43% but investors still made a loss. Why? 1/ 
They were forced to use the Mexdollar official rate which was kept fixed even though inflation was averaging 20 percent a year. If commodity needs to be converted into local currency and there are price distortions then state-dependency may be gone. 2/
The Brady Plan had bonds with attached warrants linked to GDP (Bulgaria, Costa Rica, Ivory Coast), commodity prices (Mexico, Nigeria, Venezuela), terms of trade (Uruguay, ratio of the price of Uruguay’s main exports wool, beef and rice; and the price of its main import oil). 3/
Thinking of issuing or buying government debt indexed to the state of the economy? Here is a thread on some state-contingent debt horror stories, based on a new database I have been working on. Will add more (eventually) 1/
1863: Confederate States 20yr bonds convertible to warrants for cotton at 6 pence/pound, much lower than market prices. Great deal for investors, except logistical nightmares including running the Union maritime blockade (some investors do, Liverpool Mercury, 24/04/1864, p.10) 2/
The Pinay bonds in France (no relation): 1952 60-year bond linked to gold (oops!) and a 1955 bond linked to industrial production (fantastic innovation, a proto GDP-linked bond!). Large payments on the Pinay Gold Bond following the end of Bretton Woods. But there is more. 3/
