dChan
Anonymous ID: db79e2 Aug. 4, 2020, 6:52 a.m. No.10178329   🗄️.is đź”—kun   >>8396 >>8451 >>8700 >>8859

Argentina Agrees to $65 Billion Restructuring Deal With Bondholders

 

Argentina's government confirmed on Tuesday that it reached an agreement with its major foreign private creditors to restructure $65 billion in debt, a step that the economy ministry said will "grant the country significant debt relief" and resolve its third sovereign default in two decades. The agreement, with bondholders led by BlackRock Inc. and a number of other major investment firms, enables the government to avoid a prolonged, public clash like the one that marked Argentina's 2001 default. The pact will also lend a much-needed boost to Latin America's third-largest economy, which has been hit hard by the coronavirus pandemic and is forecast to endure a significant contraction this year.

 

The settlement is the latest restructuring led by private lenders in the U.S. and other large economies on lending to borrowers in the developing world, whose capacity to repay large debts has been significantly eroded by the economic fallout of the new coronavirus. News that the government was nearing a deal was reported Monday by The Wall Street Journal. Under the agreement, Argentina will change the payment dates for some new bonds, which won't lead to an increase in the overall amount of interest payable by Argentina but will improve the value of the proposal for creditors, the ministry said.

 

Many creditors that bet on an Argentine economic resurgence in recent years lost money when the government took steps toward restructuring and bonds plummeted in value. But some investors bought in at depressed prices and stand to make profits on the restructuring, people familiar with the matter said. Major Argentine bondholders include Fidelity Management & Research Co., Monarch Alternative Capital LP, VR Capital Group, Greylock Capital Management and Pharo Management LLC.

 

"It prevents a really disastrous impasse that could have locked Argentina out of credit markets potentially for years," said Benjamin Gedan, an Argentina expert at the Wilson Center, a Washington policy group. "This scenario of a prolonged dispute that would have left Argentina once again isolated financially would have been a worst-case scenario for everyone involved." The creditors accepted a deal ahead of a Tuesday deadline set by the government. Economy Minister Martín Guzmán had said the government wouldn't improve its offer and would start talks with the International Monetary Fund on refinancing a bailout loan if there wasn't a deal with bondholders.

 

Argentina owes $44 billion to the IMF, which has said the country's debts are unsustainable and projected a nearly 10% economic contraction this year. Economic contraction, spiraling inflation, a hard-currency squeeze combined with the coronavirus pandemic made Argentina the largest of several sovereigns to seek concessions from creditors this year, joining Ecuador and Lebanon as lockdowns and travel restrictions roiled the global economy. Slashing the country's debts has been a priority for President Alberto Fernández, a member of the nationalist Peronist movement who took office in December. The country has been mired in a recession since a 2018 currency crisis while facing double-digit inflation.

 

Argentina has spent the bulk of the last two decades quarreling with investors after it stopped payment in 2001 on more than $80 billion in debt, the largest default in history by a sovereign at the time. Most bondholders settled for roughly 30 cents on the dollar while a minority battled for full repayment, eventually winning U.S. court rulings that led to another default in 2014 before a settlement in 2016 that delivered enormous gains to the few determined holdouts. Debt markets soon welcomed the country back, gobbling up 100-year bonds, the first such issuance of so-called century bonds by a junk-rated government. Last year's election of Mr. Fernández fueled concerns about a prolonged dispute with creditors after he announced plans to restructure tens of billions of dollars in debt he inherited from his predecessor, Mauricio Macri.

 

Mr. Fernández's powerful vice president, Cristina Kirchner, who governed from 2007 to 2015, often blamed Argentina's economic troubles on the IMF and foreign creditors, which her government referred to as "vulture funds." But Mr. Fernández, a more moderate Peronist, was more willing to sit down with creditors, analysts say.

moar here

https://www.wsj.com/articles/argentina-agrees-65-billion-restructuring-deal-with-bondholders-11596542758

this helps no one except the creditors-the money will not go to the people and this deal is only designed so the bond-holders are not forced to write-down the value of said debt

Anonymous ID: db79e2 Aug. 4, 2020, 7:12 a.m. No.10178491   🗄️.is đź”—kun   >>8567 >>8700 >>8859

Treasury Yields Are Tumbling Back To Record Lows

 

Yesterday's brief interruption in the demise of yield (driven by rate-locks due to the massive Alphabet issuance), has ended with Treasury yields erasing the entire move and then some.

Aside from the flash-crash spike lows on March 9th, this is the lowest 10Y yields have been ever. And stocks refuse to pay attention.

https://www.zerohedge.com/markets/treasury-yields-are-tumbling-back-record-lows

 

Stocks seesaw as Congress delays on coronavirus relief pinch consumers

 

Microsoft has until Sept. 15 to strike a deal for TikTok's US operations. U.S. equity markets see-sawed Tuesday morning as lawmakers on Capitol Hill deadlocked on a COVID-19 relief package including extra unemployment benefits that buoyed the economy during the first several months of a devastating lockdown.

 

The Dow Jones Industrial Average fell 21 points, or 0.08 percent, in the opening minutes of trading before wiping out losses. The S&P 500 dropped as much as 0.15 percent, and the Nasdaq fluctuated between small losses and gains.

 

Treasury Secretary Steven Mnuchin said after talks on Monday that negotiators made a “little bit of progress,” but Democrats and Republicans remained divided on key issues including an extra $600-per-week unemployment benefit that supplemented state payouts. GOP leaders want to cut the payment to $200, arguing that the higher amount prompts lower-paid workers not to return to their jobs. On the earnings front, BP booked a $10.9 billion writedown on its way to a quarterly pre-tax loss of $16.8 billion. The London-based oil giant cut its 10.5-cent-per-share dividend in half and said it would aim to reduce net carbon emissions from oil and gas by as much as 40 percent over the next decade.

 

Apparel maker Ralph Lauren said same-store sales in the three months through June plunged 57 percent from a year ago as COVID-19 shuttered shops around the world. Take-Two Interactive reported a 54 percent jump in quarterly revenue and raised its earnings forecast after the video-game maker saw surging demand amid the coronavirus pandemic.

 

Meanwhile, Apple continues its quest to become the first company to reach the vaunted $2 trillion market value. The tech giant, which finished the prior session with a market cap of $1.86 trillion, needs shares to close at or above $467.77 to reach the mark.

 

Looking at commodities, West Texas Intermediate crude oil was down 75 cents at $40.26 per barrel while gold was up $7.40 at $1,993.70 an ounce. Markets rallied across Asia, with Hong Kong’s Hang Seng climbing 2 percent, Japan’s Nikkei adding 1.7 percent and China’s Shanghai Composite edging up 0.11 percent.

https://www.foxbusiness.com/markets/stocks-slip-as-congress-delays-on-coronavirus-relief-pinch-consumers

 

 

https://www.marketwatch.com/investing/bond/tmubmusd10y

https://finance.yahoo.com/quote/%5EIXIC

https://www.marketwatch.com/investing/index/dxy