Is JPMorgan About To Bailout Argentina?

From Ambito:

Italian bondholders say a private agreement also would trigger the clause RUFO

The representative of a group of debt holders Argentina Italy, Tulio Zembo said that any agreement between private RUFO also would trigger the clause.

“I do not understand the idea of banks because that would trigger the RUFO” Economy Minister said yesterday. Please do not help us because it makes the situation worse,” said Zembo in dialogue with Radio La Red

“All that is settlement discussion will have to olvidárselo until January 2015, because you can not argue,” he said.

For the representative of Italian bondholders “the drama of a default is when the debtor is kneeling and can not pay, that would be a problem, here’s a serious problem but should concentrate all legal guns to go,” he said by way of conclusion.

As WSJ reports,

 
 

Still, the bonds remain at lofty prices because some investors seem hopeful that Argentina can quickly emerge from default. Many were focusing on a potential private-sector solution. Argentine press has reported this week that private-sector banks are trying to hatch a plan to help Argentina pay off the debt.

 

 

J.P. Morgan is in discussions to buy the defaulted bonds of Argentina’s holdout creditors, according to a person familiar with the matter.

 

Buying the bonds is one of many options, and the talks between J.P. Morgan and Argentine bondholders were still fluid, the person familiar said.

 

 

“The expectation of a bank deal is supporting bond prices,” said Siobhan Morden, head of Latin America strategy at Jefferies LLC. “But it’s difficult to trade these headlines when you’re getting whiplashed” by sharp price moves in thin trading. “Most people have adopted their view, taken their positions, and waited to see what the final outcome will be,” Ms. Morden said.

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