DISTRESSED DAILY: YPF Step-Up Offers Refuge From Argentine Pain

The bonds of Argentina’s biggest oil and gas company are poised to provide a buffer from the nation’s fixed income rout.

State-run YPF SA has seen its 2.5% notes due in 2029 tumble to almost 61 cents on the dollar to yield 19.4%. That makes it one of the world’s highest yielding corporate bonds ahead of a scheduled coupon step-up to 9% in January, according to Bloomberg Intelligence.

Argentina’s sovereign bonds have fallen for four consecutive weeks and are lingering around 20 cents on the dollar as the country suffers with the world’s highest inflation rate among major economies. Persistent ...