Comments on: Ivory Coast’s complicated new bond http://blogs.reuters.com/felix-salmon/2009/09/29/ivory-coasts-complicated-new-bond/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: traducator romana daneza http://blogs.reuters.com/felix-salmon/2009/09/29/ivory-coasts-complicated-new-bond/comment-page-1/#comment-53798 Mon, 29 Sep 2014 14:07:19 +0000 http://blogs.reuters.com/felix-salmon/2009/09/29/ivory-coasts-complicated-new-bond/#comment-53798 That you are rightIbrahim: Search together with Yahoo and google this operater: winxp_Graphic remote collection 945GMLit will work okay using your LG R400 laptop computer Remember to help me since my very own Bluetooth enabled is just not doing work. Earlier the has been functioning but now soon after completely new installation of Screen XP the not working. Even though I have tried out frequently to setup Bluetooth’s operators. If anyone can fix this problem, please help me. We will probably be happy to from this point of view. Regards, Younis

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By: nounou http://blogs.reuters.com/felix-salmon/2009/09/29/ivory-coasts-complicated-new-bond/comment-page-1/#comment-7366 Thu, 01 Oct 2009 10:13:30 +0000 http://blogs.reuters.com/felix-salmon/2009/09/29/ivory-coasts-complicated-new-bond/#comment-7366 Ecuador was the first country to default on its Brady bonds, in 1999. Ivory Coast followed, as did Argentina. But when Ecuador and Argentina restructured their bonds, they didn’t go back to the London Club — they went to the bond market

… ecuador and argentina are out, they are barred from international financial market.

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By: Mike http://blogs.reuters.com/felix-salmon/2009/09/29/ivory-coasts-complicated-new-bond/comment-page-1/#comment-7281 Wed, 30 Sep 2009 01:44:21 +0000 http://blogs.reuters.com/felix-salmon/2009/09/29/ivory-coasts-complicated-new-bond/#comment-7281 I wouldn’t be surprised if the bonds are still on London Club books because nobody was interested in buying them.
IIRC, Côte d’Ivoire was once an economic success story by sub-Saharan African standards, to the point where they had to adopt a restrictive immigration policy. Eventually, though, Cd’I reproduced the typical sub-SA pattern of awful governance and endemic violence, with the concomitant loss of whatever gains they had once made.

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By: Joe the Trader http://blogs.reuters.com/felix-salmon/2009/09/29/ivory-coasts-complicated-new-bond/comment-page-1/#comment-7279 Wed, 30 Sep 2009 01:39:39 +0000 http://blogs.reuters.com/felix-salmon/2009/09/29/ivory-coasts-complicated-new-bond/#comment-7279 I’m not sure I understand your point. Because the exit bond is not a bullet structure it is a loan or is it because the London Club led negotiations it is held by banks is a loan? Does it matter?
Second for someone who “covered the Brady market for a living” you should know that the majority of exit bonds in restructurings have some sort of principal grace period and step up coupon structure. Indeed. look at the Russia 30 (step-up coupon and amortizing bond), Ecuador ’30 (step-up, amortizing or principal buyback with claim on debt varying over the life of the bond, to the Argentina Discounts and Pars. (Step-coupon amortizers, and oh yes discount capitalize). The idea is not to make it “complicated” on the behalf of bankers but to provide cash flow relief for sovereign borrower.

I think you will find that most of the loans that turned into Brady bonds found their way into a broader market the original bank lenders. This will be likely be the case with the Ivory Coast as investors who are benchmarked to an emerging market bond index will need to buy these assets to match the benchmark.

Far more interesting would be to look at what the implications are now that more countries are now curing default. Indeed even contentious Argentina is considering a deal with the 2005 holdouts. Why are Ivory Coast and Argentina both likely to reach a deal after (9+ years for Ivory Coast and 4+ years for Argentina)? Could it be that access to global capital markets is more important in the new world order? Has the cost of defaulting on sovereign obligations changed?

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