In a speech in New York last month, Argentina’s president, Cristina Fernández Kirchner, announced a major change of stance on the bond hold-outs. She said the government was considering a proposed deal for the remaining $20 billion of defaulted bonds from the 2001 crisis. She said the terms of the proposals were more favourable to Argentina than those in the 2005 swap, which carried a 76% haircut.
A group of investment banks, representing holders of $10 billion of the defaulted bonds, put forward a proposal for a bond swap that could be seen as a win-win for the country and the hold-outs. Hedge funds...
