It's official for Argentina...super-duper bullish i s'pose:
Buenos Aires, Nov. 2 (Bloomberg) -- Argentina plans to default on at least $95 billion of bonds, more than twice the amount Russia failed to honor in 1998, by swapping the debt for securities that pay lower interest rates.
Argentina's floating rate bond fell 14 percent to an offer price of 41.75, to yield 69 percent, a record, according to J.P. Morgan Securities Inc. It plunged more than 9 percent yesterday. Brazil's widely traded ``C'' bond fell 1.9 percent to 66.25 offered, according to J.P. Morgan prices.
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``We could see a big outflow of deposits and the crisis becoming accelerated, and not abated, by these measures,'' said Mohamed El Erian, who helps manage $7.5 billion at Newport Beach, California- based Pacific Investment Management. He has no Argentine debt in his Latin American debt holdings.
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The default dwarfs that of Russia, which in August 1998 stopped paying on $40 billion of domestic bonds. Argentina, which has $132 billion of public debt, doesn't plan to restructure any multilateral loans, Finance Secretary Daniel Marx said.
``This is something new for the financial community in terms of order of magnitude,'' said Mauro Leos, an analyst at Moody's Investors Service. ``It is unique in every respect.''
Full story at link below.
Wasatch |
