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Singer Denial Failing to Quell Win-Win Charge: Argentina Credit

Billionaire Paul Singer has denied he owns credit-default swaps that would allow him to profit if Argentina shirks a court order requiring it pay him in full and halts payments. That hasn’t stopped Argentina from repeating the claim as its bond risk soars to the highest in the world.

Economy Minister Hernan Lorenzino said March 30 that the “sole” purpose of Singer’s legal dispute with Argentina over its record $95 billion default in 2001 is to make money from his swap holdings, a month after his NML Capital Ltd. fund said in a court hearing it doesn’t own the contracts. Argentina and holders of restructured bonds have also said in filings in the U.S. Court of Appeals in New York that Singer’s ownership of swaps is an incentive for his fund to pursue litigation that may trigger a default or an increase in the contracts’ prices.