Daniel's Feed
Jun 25, 2014

Argentina economy minister tells diplomats nation being pushed to default

UNITED NATIONS, June 25 (Reuters) – Argentina’s Economy
Minister Axel Kicillof warned United Nations diplomats on
Wednesday the country is being pushed toward a new default after
a U.S. Supreme Court decision favored holdout creditors seeking
payment on bonds it defaulted on in 2001-2002.

Referring to those creditors as “vulture funds,” Kicillof
said the June 16 decision by the top U.S. court to deny
Argentina the chance to appeal a lower court ruling means it
faces an insurmountable payment to all bondholders, given it has
just $28.5 billion in foreign currency reserves.

Jun 24, 2014

Argentine holdouts say would discuss extension in good faith

NEW YORK, June 24 (Reuters) – Holdout investors in Argentine
sovereign debt said on Tuesday they would discuss an
accommodation to let the government pay other bondholders facing
a potential default, if negotiations to settle the legal dispute
have made good progress before July 30.

Lawyers representing the holdout investors, led by Elliott
Management’s NML Capital Ltd and Aurelius Capital Management,
also said in a letter to U.S. District Judge Thomas Griesa there
were no grounds to grant Argentina’s request to reinstate a
suspension of his order to make payment.

Jun 23, 2014

U.S. dollar mixed after upbeat data; Aussie and Kiwi jump

NEW YORK, June 23 (Reuters) – Optimism over China’s economic
prospects drove the Australian, New Zealand and Canadian dollars
higher on Monday, while the euro struggled to make headway after
some softer business- sentiment surveys.

Stronger-than-expected May U.S. existing home sales data
added to a generally appealing longer-term outlook for the U.S.
dollar, although some analysts are waiting for more confirmation
which would feed into the tightening bias for U.S. monetary
policy.

Jun 20, 2014

Analysis – Argentina may fume over debt but seen driven to make deal

NEW YORK (Reuters) – Argentina may hyperventilate about greedy hedge funds right up to and past the point of another default on $100 billion (£58.7 billion) of bonds, but posturing and talk won’t stop events beyond its control from forcing a settlement with holdout bondholders, whether it’s next week, next month or next year, experts said.

Faced with dwindling foreign exchange reserves, a looming recession, a $6 billion principal and interest payment on another bond that matures next year, the nation can’t risk closing the door on access to international capital markets to solve a coming cash crunch and a potentially even bigger default.

Jun 20, 2014

Argentina may fume over debt but seen driven to make deal

NEW YORK (Reuters) – Argentina may hyperventilate about greedy hedge funds right up to and past the point of another default on $100 billion of bonds, but posturing and talk won’t stop events beyond its control from forcing a settlement with holdout bondholders, whether it’s next week, next month or next year, experts said.

Faced with dwindling foreign exchange reserves, a looming recession, a $6 billion principal and interest payment on another bond that matures next year, the nation can’t risk closing the door on access to international capital markets to solve a coming cash crunch and a potentially even bigger default.

Jun 18, 2014

Argentina to negotiate with holdout investors for first time

NEW YORK (Reuters) – Argentine officials will begin to negotiate for the first time next week with hedge funds that refused to take part in its debt restructuring, a lawyer for the country said in Manhattan federal court on Wednesday.

“I have been told the plan is to be here next week to negotiate with the holdouts to resolve this situation,” said Carmine Boccuzzi of Cleary Gottlieb Steen & Hamilton at a hearing before U.S. District Judge Thomas Griesa in Manhattan.

Jun 17, 2014

Analysis – Argentine debt investors may let law slide to reach deal

NEW YORK (Reuters) – Argentina’s prospects for finally closing out its 12-year-old default on $100 billion (£58.94 billion) of debt will depend on more political and legal maneuvering, a motivated U.S. judge and the fatigue of investors, now that it has lost an epic battle with holdout creditors in the U.S. courts.

Negotiating a new deal with the holdouts, who have fought to exercise their investor rights through the courts, potentially violates a provision specifically written to stop anyone getting a better deal than bondholders who participated in two prior restructurings in 2005 and 2010.

Jun 17, 2014

Argentine debt investors may let law slide to reach deal

NEW YORK (Reuters) – Argentina’s prospects for finally closing out its 12-year-old default on $100 billion of debt will depend on more political and legal maneuvering, a motivated U.S. judge and the fatigue of investors, now that it has lost an epic battle with holdout creditors in the U.S. courts.

Negotiating a new deal with the holdouts, who have fought to exercise their investor rights through the courts, potentially violates a provision specifically written to stop anyone getting a better deal than bondholders who participated in two prior restructurings in 2005 and 2010.

Jun 16, 2014

What’s next for Argentina’s debt battle after latest court defeat?

NEW YORK/BUENOS AIRES (Reuters) – The U.S. Supreme Court on Monday declined to hear Argentina’s appeal seeking to overturn an order to pay holdout sovereign creditors $1.33 billion, setting off a scramble in Buenos Aires on what it can do now given its legal options are exhausted.

If Argentina cannot come to an agreement with the holdouts and pay them at the same time it pays the bondholders who participated in two prior sovereign restructurings, the South American nation will enter a technical default. Exchange bondholders hold roughly $24 billion worth of restructured debt.

Jun 14, 2014
    • About Daniel

      "I'm a New York-based global investment correspondent with over 20 years of experience covering financial markets, business and foreign policy. My current post lets me roam across all asset classes and geography, from the developed to the emerging markets. I've reported and taught business and economic journalism from Asia, Europe, Latin America and the United States. Prior to joining Reuters I was a producer at CNN Business News in New York."
      Joined Reuters:
      1997
    • More from Daniel

    • Contact Daniel

    • Follow Daniel