Losers From Argentina Rout Are Not Giving Up

Fund managers recently burned by Argentina are doubling down on the country’s bonds, saying that prices have dropped to levels that should offer solid returns, the Financial Times reported. Many investors endured big marked-to-market losses in the wake of August’s primary election, which paved the way for a return of a Peronist government. Stocks and bonds plunged, while the peso dropped lost more than one-fifth of its value against the US dollar. But some say the market overreacted, arguing that Argentina is better positioned to avoid a repeat of its chaotic default on $100bn of debts almost two decades ago. Prices of the country’s sovereign bonds are now below levels some investors believe are in line with potential recovery values, once the debts have been restructured. Read more

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