| Nazareth Festekjian | ||||||
To a great extent, the success of the Ecuador exchange offer was a self-fulfilling prophecy.
As news of a forthcoming offer started circulating, Ecuadorean bonds began to rise in value. When the offer was released on July 27 2000, they skyrocketed, pricing in a successful exchange. Bondholders, nearly all of whom mark to market, were given the most obvious evidence possible that the new bonds were worth substantially more than the old ones: the benchmark PDI bond rose 53% from July 17 to July 28, and 31% on the day of the offer alone.
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