Argentina Trumpeting Demand for Swap That May Not Exist

Argentina’s Cabinet Chief Jorge Capitanich said today that “many” bondholders have publicly expressed their willingness to receive payments outside of the U.S. as a means to circumvent a legal dispute that’s disrupted debt servicing.

Only one investor, though, could be found in a search for people who’ve made public statements backing the debt exchange proposal: Fintech Advisory Inc.’s David Martinez. Most investors aren’t willing to contradict U.S. courts, which say the plan to pay debt in Buenos Aires or France is illegal, according to Stuart Culverhouse, the chief economist at investment bank Exotix in London. Investors are also concerned they won’t be able to transfer the funds outside the South American country without U.S. intermediaries, which are legally banned from assisting Argentina, he said.