Argentina Bonds May Be Worth Less Than 40 Cents in a Default

Less than two years after Argentina made a splash in markets by selling a $2.75 billion, 100-year bond, another debt restructuring is a real possibility after President Mauricio Macri was routed in a primary election, Bloomberg News reported. Money managers and analysts from firms including Citigroup Inc. and Bank of America Corp. say investors are likely to recoup less than 40 cents on the dollar on its notes if Argentina reneges on its debt for the third time in two decades. Bonds got fairly close to testing those levels last week, when some notes traded as low as 45 cents on concern Alberto Fernandez and his running mate, former President Cristina Fernandez de Kirchner, would undo Macri’s market-friendly agenda. Read more

Location