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Vulture Funds Circle Argentina, Waiting for Moment to Buy

Overseas bonds extend drop in the wake of new capital controls
Distressed investors may swoop in when prices reach 30 cents

Pedestrians walk past the Buenos Aires Stock Exchange in Buenos Aires, Argentina. — Pedestrians walk past the Buenos Aires Stock Exchange in Buenos Aires, Argentina.
Photographer: Erica Canepa/Bloomberg

By

Aline Oyamada and

September 3, 2019, 4:39 PM UTCUpdated onSeptember 3, 2019, 10:22 PM UTC

The sell-off in Argentina bonds is so severe that it may soon attract distressed-debt investors betting that there’s money to be made in a restructuring.

With overseas notes trading at about 38 cents on the dollar, the vulture funds are probably still a ways from swooping in. Shops including Morgan Stanley and Merian Global Investors expect buyers with a strong appetite for risk will emerge at about 30 cents.