Is JPMorgan About To Bailout Argentina# Stock
B*n
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With Argentine politicians explaining that "Argentina is not in default" and
ISDA set to decide if last night's default is an 'official' trigger event
for CDS, it appears Kirchner, Kicillof, and their (k)omrades may have found
an angel. The initial 'bailout' plan, by which Argentine banks bought the
holdouts defaulted debt (then promptly acquiesced to Argentina's old debt-
swap agreement), failed last night; but, as WSJ reports, JPMorgan is in
discussions to buy the defaulted bonds of Argentina's holdout creditors.
While this would not impact the default decision (that is history), it would
speed up the exit from default rapidly. Of course, JPM is not doing this
out of love for Argentina, we suspect they are on the hook for a few billion
CDS and need some cheapest-to-deliver bonds to help them through the
settlement process.
ISDA set to decide if last night's default is an 'official' trigger event
for CDS, it appears Kirchner, Kicillof, and their (k)omrades may have found
an angel. The initial 'bailout' plan, by which Argentine banks bought the
holdouts defaulted debt (then promptly acquiesced to Argentina's old debt-
swap agreement), failed last night; but, as WSJ reports, JPMorgan is in
discussions to buy the defaulted bonds of Argentina's holdout creditors.
While this would not impact the default decision (that is history), it would
speed up the exit from default rapidly. Of course, JPM is not doing this
out of love for Argentina, we suspect they are on the hook for a few billion
CDS and need some cheapest-to-deliver bonds to help them through the
settlement process.