“Billionaire hedge fund manager Dan Loeb, who counts Argentine bonds as his largest sovereign holding, said he’s confident in the debt’s prospects no matter who wins the nation’s runoff elections this month,” reports Bloomberg.
For close to two years, Argentina has been at odds with creditors, including some well-known U.S. hedge funds. Last year, the country offered “holders of its 7% Boden 2015 various options. They can either cash in at 97 cents on the dollar or swap into 8.75% Bonar 2024s at 99.70 for every 100 of the 2015s exchanged, plus accrued interest,” according to Reuters, a deal the country’s creditors are balking at.
Investors rejected that deal, which was not surprising because most debt swaps involve incentives for the creditor, but in this case, Argentina demanded a premium. [Argentina ETF Sees Big Inflows]
Global X MSCI Argentina ETF