Vulture Funds Circle Argentina, Waiting for Moment to Buy

The sell-off in Argentina bonds is so severe that it may soon attract distressed-debt investors betting that there’s money to be made in a restructuring. With overseas notes trading at about 38 cents on the dollar, the vulture funds are probably still a ways from swooping in, Bloomberg News reported. Shops including Morgan Stanley and Merian Global Investors expect buyers with a strong appetite for risk will emerge at about 30 cents. “The market will go lower and distressed investors will step in at some point, even with the uncertainty,” said Alain Nydegger, a money manager at Pala Assets in Switzerland, which focuses on emerging-market debt. Read more