Sovereign defaulters Ecuador and Argentina marked the May-June
period in the bond market: Ecuador with a $2 billion issue that
surprised bankers and investors alike, and Argentina with a
series of moves to avoid default after a US court ruling that
took markets by surprise.
NEWS BONDS: Defaults, revisited
A market return by Ecuador and a series of maneuvers by
Argentina dominated debt markets in the second quarter.
By Eduardo García
While the two sovereigns dominated the headlines, a barrage
of other Latin American issuers continued making the best of
strong liquidity and appetite for high-yielding assets to
squeeze in prices.
In mid-June, the US Supreme Court upheld a ruling by a lower
court calling for Argentina to pay some $1.3 billion to holdout
creditors before servicing restructured bonds. The ruling came
shortly before a $900 million payment to restructured
bondholders came due on June 30.
Paying holdout creditors in full would trigger a clause
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