Argentine Bond Swap More Dream Than Real for KBC
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Argentina’s plan to pay holders of foreign bonds from local accounts looks doomed to fail even before it gets off the ground given concern that investors who participate could be held in contempt of a U.S. court ruling, according to KBC Asset Management SAD and JPMorgan Chase & Co.
“This might be a dream for Argentina,” said Olivier De Timmerman, an emerging-market portfolio manager at KBC in Luxembourg. “I am quite doubtful that this will go into something concrete because I don’t think current holders would like to be in contempt of a U.S. court. This will be a lengthy process and it will be quite messy.”