As IMF Talks Bog Down, Argentine Bonds Plunge Toward 30 Cents
- Sovereign bonds slip to lowest prices since debt restructuring
- Investors see few price catalysts as IMF deal languishes
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Six months after Argentina exited default, its new bonds have sunk to a mere 30 cents on the dollar.
The depressed price is, in fairness, partly the result of the basic mechanics of the securities -- they carry artificially low interest rates and a generous grace period -- but it also reflects a grim reality that’s setting in on creditors: The IMF deal that the country desperately needs is a long ways off.