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.
Photographer: Erica Canepa/BloombergThis article is for subscribers only.
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.