Argentina Bond Rout Blows Up the Template for Debt Restructuring

Investors are giving up on Argentina just six weeks after it pulled off a $65 billion restructuring, Bloomberg News reported. The country’s overseas bonds have plummeted more than 20% since early September, the world’s biggest drop in that span. Morgan Stanley calls it the worst rout in the aftermath of a restructuring in at least 20 years, and it comes despite the nation winning a whopping $38 billion of debt relief from creditors. Those same investors have been dismayed at what followed. While perhaps not shocking from a serial defaulter run by a leftist government that’s vowed to prioritize the needs of its people over financiers, there’s no credible long-term plan to fix the economy and return to growth. Read more

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