muscleman Posted July 27, 2014 Share Posted July 27, 2014 Has anyone looked into Argentina debts and could share some thoughts on how to play it and if it is profitable to play this? Both Dan leob and Kyle Bass bought some Argentina debt. However, from the following wiki, I suspect that they also bought a larger amount of CDS. Elliot Management is demanding par on the defaulted bonds, and I guess they may also have a large CDS position. I have a feeling that this will default first before it recovers. Thoughts? :) http://en.wikipedia.org/wiki/Argentine_debt_restructuring "Vulture funds, moreover, own a large quantity of credit default swaps (CDS) against Argentine bonds, creating a further incentive to not only trigger a default against Argentina" "Meeting vulture funds' full face-value demands is problematic for Argentina, because although bonds held by vulture funds are a small share of the total (1.6%), such a settlement would lead to lawsuits from other bondholders demanding to be paid on similar terms and thereby create a liability of USD15 to USD20 billion" Link to comment Share on other sites More sharing options...
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