As Creditors Blast Argentina’s Offer, Bond Prices Start to Rise
- Investors find plenty to dislike, but also some positive signs
- Proposal would save Argentina about $40 billion in payments
People line up outside banks to receive monthly cash payments, in Buenos Aires, Argentina.
Photographer: Sarah Pabst/BloombergThis article is for subscribers only.
A three-year payment moratorium, a huge cut in interest rates and an across-the-board extension in maturities. The bond restructuring proposal that Argentina unveiled late last week was harsh by any standards.
And yet, in a sign of just how low expectations were ahead of the announcement, investors are now actually bidding up prices on the country’s $66 billion of foreign bonds in the secondary market. Securities due in six years were trading around 33 cents on the dollar early Monday morning, up from 30 cents on Friday and 26 cents the day before.