Don't Cry to Me Argentina
Argentina’s Holdout Creditors Aren’t All Vulture Funds
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  • michaelj68

    Sorry to say this but given Argentina’s history of chronic defaulting Ms. Lovarto took a big risk investing in their sovereign bonds. I bet she was attracted to the much higher rates compared to US Treasuries. There is a good reason the yield was higher and she bet wrong. So should I feel sorry for investors in junk bonds who lost out when the companies defaulted on those bonds?

  • Curious Mayhem

    Investors are responsible for the risks they take.

    That said, there is an important point here, that a wide range of people are getting screwed by Argentina, not just hedge funds. What they’re doing is irrational and risks shutting Argentina out of world capital markets for a long time. The one bright spot is that a majority of Argentine voters recognize this and the need for foreign investment (of all kinds, not just in government debt).

    Kirschner’s party is trying to get her to change policy. But her government — prosecuting independent economists for publishing accurate inflation numbers, imposing absurd price and capital controls — has constructed a narcissistic fantasy land for itself. The court decision was a jolt of reality, and they don’t like it.

    BTW, remind you of any large, developed countries in the northern hemisphere?

  • FriendlyGoat

    Can you tell us the relative dollar stakes of the big vultures and the 13 little claimants? Individuals who bought before the default and corporations which bought after the default are two different animals.

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