Rumour: Plan to crash BODEN 2012 bond prices

[TrevorCito]

There is a rumour going around the financial district of Buenos Aires that the government plans to crash the bond prices for BODEN 2012 just prior to the August payment.

I was talking to a well connected person in the industry yesterday and it was let slip during a discussion on bond price stability what was supposedly going to happen.

If the government does crash bond prices prior to the payment they will get away with paying less than bondholders are expecting to receive. I believe this government is capable of doing this.

If it does happen, the next 6-8 months will be worse than the 2001 correlito. I really hope they are wrong.

As they say on wall st, buy the rumour and sell the news.

Has anybody heard anything about it?

 

[davonz]

I think these are due on the 03/08/12.. How can they crash the price ?

 

[dennisr]

Government decide to pay in pesos.

 

[expatinowncountry]

Government decide to pay in pesos.

They have screwed the economy to save enough dollars to pay among other things the BODEN. It would be sad that they pay it in pesos.

 

[Napoleon]

They have screwed the economy to save enough dollars to pay among other things the BODEN. It would be sad that they pay it in pesos.

This administration is sad as it is.

If she and her husband had actually cared about the future of Argentina, with the high soy prices, this country would be in excellent shape for the long haul. As it is, they've been running it into the ground even faster than soy could bail it out. Es una vergüenza.

You don't have to be an America loving capitalist to look towards the future. Andres Oppenheimer even uses kid gloves as he points out how the failed K policies have blown a once in a century opportunity to stabilize Argentina.

http://www.miamiherald.com/2012/06/16/2851968/argentinas-economic-fiesta-is.html

 

[nikad]

I think crashing bond prices is BS. Especially Boden 2012. These are not paying rent but paying capital anyway and are worth 100 usd each. If they pesify that would mean the country is in default again. I doubt they will do that, it is a suicide. There are elections coming next year as well. I believe they will pay usd bonds in usd, at the very least they ones under NY law, that is why you will see some bonds have gone up in the past weeks, such as ro15 and others moved just a little bit just as aa17.

 

[dennisr]

Have no idea of the validity of the rumor. Know the President of Ecuador toyed with the bond markets awhile back and their bonds plummeted. Holders panicked and sold for a fraction of the face value. The beauty of the thing, Ecuador bought the bonds, saved millions. Sovereign debt is a very risky business with serial debtors. One big poker game and they hold all the cards.

 

[solerboy]

Have no idea of the validity of the rumor.

Well, they are not very good at keeping secrets are that !

 

[surfing]

This administration is sad as it is.

If she and her husband had actually cared about the future of Argentina, with the high soy prices, this country would be in excellent shape for the long haul. As it is, they've been running it into the ground even faster than soy could bail it out. Es una vergüenza.

You don't have to be an America loving capitalist to look towards the future. Andres Oppenheimer even uses kid gloves as he points out how the failed K policies have blown a once in a century opportunity to stabilize Argentina.

http://www.miamiherald.com/2012/06/16/2851968/argentinas-economic-fiesta-is.html

I can only assume that the "Tale of the Grasshopper and the Ants" must be unknown to the little children of these parts.

http://www.youtube.com/watch?v=wM1DgihKHVI

 

[el_expatriado]

Who is going to sell a boden 2012 bond right now? It expires in two months. People are going to wait and get the capital payment. Good luck crashing this bond.

There is no way the government is going to pay this bond in pesos.