February 21, 2020 |
Investors are facing a potential haircut of at least 45% on Argentina's sovereign bonds now that the International Monetary Fund (IMF) has thrown its support behind the government's plans to restructure more than $100 billion in debts.
"The market is preparing for a serious haircut," said Norberto Sosa, a director of Invertir en Bolsa (IEB), a brokerage firm in Buenos Aires. He said a haircut of 58% has been priced into local-law bonds and 50% into the New York-law securities, or an average of 5
With support from the IMF, the government prepares what is expected to be an "unfriendly" restructuring offer as payments loom, sources say