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Michael Hasenstab’s Argentina Bond Blowup Is Only Getting Worse

  • Government warned investors of a painful restructuring ahead
  • Templeton Global Bond Fund has lost investors 3% in past year

Argentina’s move to delay a $1.4 billion local bond payment this week hardly made a ripple in the broader world of global investing, with most outsiders seeing it as a sideshow detached from the real drama surrounding the looming default on the country’s billions of dollars of foreign obligations.

Not so for Franklin Templeton and star money manager Michael Hasenstab. The firm owned about a quarter of the notes as of December, according to data compiled by Bloomberg.