Malbec Bonds Beat Defaulted Argentine Peers on Investor Hope
- Defaulted Mendoza bonds trade above sovereign, Buenos Aires
- Creditor group rejects latest offer, want talks to continue
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A glimmer of hope is lurking within Argentina’s default-ravaged debt landscape: Bonds sold by Mendoza, the Andean-bordering province famed for exports of full-bodied Malbec wine.
Mendoza’s bonds are trading near a four-month high, even after some bondholders rejected its latest restructuring offer. The province stopped servicing its debt in June after failing to reach agreement with creditors and missed a $25 million coupon payment. Even so, markets are optimistic that less-profligate pre-pandemic spending policies, not to mention all that wine, will buoy the province as it renegotiates $590 million of local and international debt.