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Argentina's bondholders prepare for 'serious haircut'

Argentina's bondholders prepare for 'serious haircut'

February 21, 2020 | Charles Newbery
With support from the IMF, the government prepares what is expected to be an "unfriendly" restructuring offer as payments loom, sources say

Asset Management Bonds Debt Capital Markets Corporate & Sovereign Strategy Economy & Policy Fixed Income Funds Structured Finance Regulation Politics Argentina United States

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

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