Market Thinks Argentina Won't Default

[EdRooney]

Country risk dipped below 600 for the first time since 2008, and Argentina can now issue sovereign bonds in the 8% range (vs. 8.75% for the YPF deal). (source)

In laymens terms, this means that people are now more willing to buy bonds from Argentina in spite of the threat of default, and the country has its best credit ratings score in 7 years.

Neo-liberal CFK's ultra-capitalist policies are making Mr Market happy!

 

[French jurist]

Country risk dipped below 600 for the first time since 2008, and Argentina can now issue sovereign bonds in the 8% range (vs. 8.75% for the YPF deal). (source)

In laymens terms, this means that people are now more willing to buy bonds from Argentina in spite of the threat of default, and the country has its best credit ratings score in 7 years.

Neo-liberal CFK's ultra-capitalist policies are making Mr Market happy!

And it was announced first on BAexpats... We are champions of the wwooorrrllldd!

 

[ajoknoblauch]

Country risk dipped below 600 for the first time since 2008, and Argentina can now issue sovereign bonds in the 8% range (vs. 8.75% for the YPF deal). (source)

In laymens terms, this means that people are now more willing to buy bonds from Argentina in spite of the threat of default, and the country has its best credit ratings score in 7 years.

Neo-liberal CFK's ultra-capitalist policies are making Mr Market happy!

And investors will rush to get their lempiras and guaraníes into Argentine bonds.

 

[sergio]

Article in WSJ pointed out that there are middle class Argentines among the so-called 'vultures" holding out. One very old lady was interviewed in her "modest" flat. She worked all her life to save the money she had invested in bonds and believes she has a RIGHT to the return of her investment. I totally agree. I have never borrowed money that I have not returned and it is beyond me how any reasonable person can think that it is in any way just to refuse to repay a loan or pay a debt in full.

 

[Somewhereinba]

I think the crux of the issue is what constitutes a fair value? Principle + X% interest?? New bonds?? The 93% accepted big discounts and then the Government goes and pays the IMF the full value of their debt. That would annoy me if I was a bond holder who just accepted a big discount so I can understand the reason all bond holders should be treated equally to prevent special treatment. However the hedge funds involved do seem to be acting greedy with how much they expect back. A balance needs to be found for everyone so the media circus can stop and those damn ads can get taken off the air.

 

[sergio]

They should get back at least what they invested.

 

[EdRooney]

OK we've had the debate about the specifics of paying the bonds in at least two other threads. (Look em up yourself. I think there may be one on Obamacare too while you're at it).

Meanwhile, no comments about how the K administration-- which has been repeatedly accused of being the next coming of Hugo Chávez-- has become free-market capitalism's bestest buddy for life? Paying off the IMF, paying Repsol, multi-billion dollar deals with Chevron...

So let's hear it from the Cámpora-philes and the K-Haters.... Or do you all just hate/love her regardless of the policies?

 

[Matiasba]

OK we've had the debate about the specifics of paying the bonds in at least two other threads. (Look em up yourself. I think there may be one on Obamacare too while you're at it).

Meanwhile, no comments about how the K administration-- which has been repeatedly accused of being the next coming of Hugo Chávez-- has become free-market capitalism's bestest buddy for life? Paying off the IMF, paying Repsol, multi-billion dollar deals with Chevron...

So let's hear it from the Cámpora-philes and the K-Haters.... Or do you all just hate/love her regardless of the policies?

It is a smart move from Cristina. I already said this here months ago. She wants governability, make a smooth transition to next government. The way every government finished since the last 40 years makes her will to end properly, negotiating with the right, keeping inflation cool, giving them their great gain, not fighting with big capitals, CIADI, Club de Paris, YPF, etc, etc, she wants governability.

 

[Somewhereinba]

OK we've had the debate about the specifics of paying the bonds in at least two other threads. (Look em up yourself. I think there may be one on Obamacare too while you're at it).

Meanwhile, no comments about how the K administration-- which has been repeatedly accused of being the next coming of Hugo Chávez-- has become free-market capitalism's bestest buddy for life? Paying off the IMF, paying Repsol, multi-billion dollar deals with Chevron...

So let's hear it from the Cámpora-philes and the K-Haters.... Or do you all just hate/love her regardless of the policies?

1. They paid off the IMF using US dollars reserves while at the same time only paying 25-35% of face value for bond holders effected by the default - special treatment anyone? US dollar reserves in Argentina were over 50 billion in 2011, now they are at ~28 billion. Not a good look.
2. They paid Repsol using debt (bonds) which have high yield because the market see's Argentina as a high risk economy due to its great economic past.
3. Multi-Billion dollar deals with Chevron? If that is a criteria for showing economic prowess then Venezuela, Iraq, Nigeria, Liberia, Congo, Somalia and a host of other economic successes would also pass your test. All those countries listed and even less developed ones have big oil companies massively invested in them.

Nothing you said convinces me that Argentina is on it's way to economic successes.

 

[EdRooney]

Whoa hold on there, when did I say Argentina was on its way to economic success?