Bond Litigation: Arg Likely To Default Causing Drop In Peso

[pmacher]

See http://www.shearman.com/files/Publication/2a8293eb-d203-4735-9b6e-06b3cd219d70/Presentation/PublicationAttachment/79dd836f-39e2-4749-b317-11c78c4e1684/Don%E2%80%99t-Cry-for-Me-Argentine-Bondholders--Argentina-Responds-to-the-Second-Circuit%E2%80%99s-Inquiry.pdf
Peso will probably hit 10-12 to a US$ before too long.

 

[pmacher]

When Second Circuit Ct of App issues ruling ( in about a week) there will be a sudden drop of 15% to place the rate at 11ish.

 

[pmacher]

If you think the peso drop has nothing to do with the impending 2nd Circ Ct decision, then watch what happens when the decision is actually issued...an immediate 5% drop and then another much larger drop when the K admin says it will reconsider paying the substitute bondholders.