Argentina Pledges Debt Talks as TCW Sees Tough Road Ahead

Investors betting that talks between Argentine President Cristina Fernandez de Kirchner and holders of the nation’s defaulted bonds from 2001 will avert a second default in 13 years may be headed for disappointment, according to TCW Group Inc.

For the first time in a decade, Fernandez agreed yesterday to negotiate with holdout creditors from the nation’s $95 billion default. The dispute has whipsawed markets since the U.S. Supreme Court on June 16 left intact a ruling requiring Argentina to pay the investors, including a hedge fund run by billionaire Paul Singer, in full. The country on June 30 has an interest payment due on its restructured bonds that will be blocked if the holdouts remain unpaid.