I am on Chapter 6 of the Intelligent Investor - Portfolio Policy for the Enterprising Investor: Negative Approach. in the specific topic of Foreign Government Bonds.
It gave a brief intro about how historically since 1914 they have a bad history, but every few years or so the market conditions are in it's favour.
This is the direct quote I didn't understand, mainly, it's the number's in here. I don't know what they represent.
But we do know that, if and when trouble should come the owner of foreign obligations has no legal or other means of enforcing his claim.
Those who bought Republic of Cuba 4½s as high as 117 in 1953 saw them default their interest and then sell as low as 20 cents on the dollar in 1963.(edited)
What the heck does 4½s mean?