The Wall Street Journal
Thursday, April 04, 2013
By Prahba Natarajan
Argentina's credit-default swaps have made a comeback on expectations that the country will find a way to pay its existing bondholders despite complications posed by a high-stakes court case.
The cost of five-year protection on Argentine debt fell to 2,737 basis points Thursday morning from nearly 3,417 basis points on Monday, a significant decline after days of successive increases amid concerns that the South American country would be forced by court rulings into a technical default.
The Wall Street Journal
Thursday, April 4, 2013
By Charles Roth
What do you call a debt restructuring that doesn’t reduce, but increases the principal or interest payable, and without extending maturities on bonds that faithfully pay out?
Call it the “Argentine cram-up.”
The country’s bonds and the credit derivatives that insure against default now dwell in a parallel universe.
Bloomberg
Tax Man’s Dollar-Hunting Dogs Can’t Stop Drain: Argentina Credit
Thursday, April 4, 2013
By Camila Russo and Katia Porzecanski
April 4 (Bloomberg) -- Argentina’s attempt to bolster tax collection by accusing HSBC Holdings Plc of evasion and cracking down on the world’s largest commodity companies is failing to stem a slump in reserves, the primary source for the nation’s bond payments, as capital flight persists.
Ricardo Echegaray, the 46-year-old head of the tax agency known as Afip, boosted tax collection to 808 billion pesos ($157.5 billion) last year, or a record 37 percent of Argentina’s gross domestic product, according to data from the Economy Ministry. The effort wasn’t enough to plug the country’s deficit, which grew to the widest since at least 2001. That pushed reserves, the nation’s primary source of payments to holders of bonds that yield three times the average in emerging markets, to a six-year low of $40.4 billion.
(On the Terminal)
Keine Kommentare:
Kommentar veröffentlichen