Jamaica might be best known for its sunny beaches, reggae music and world class athletes such as Usain Bolt. But this Caribbean island nation of 2.9m is increasingly garnering international attention for something less boast-worthy : its crippling debt crisis.
In a television address late Monday, the country’s prime minister Portia Simpson Miller said the government will launch a restructuring of its local debt – its second in three years – as it looks to stave off a “serious economic crisis” and secure a credit line from the IMF. Continue reading »
By Timothy Ash of Standard Bank
New issues are finally coming out of the woodwork and pricing very, very aggressively. It’s set to be a feeding frenzy across EM, and any EM issuer worth its salt, or its rating, is likely to want to get some cash (as much as possible) in the bank.
I am tempted to say that almost any issuer, whatever the name and fundamentals, with a bit of carry could tap this overbaked and pretty ridiculous market. Continue reading »
The ballyhoo over a New York court ruling ordering Argentina to pay $1.3bn to holdout creditors, has raised questions over whether Ecuador could also be dragged to court by so-called vulture funds.
Unfortunately for some bondholders, but luckily for Ecuador’s government, it seems very unlikely, at least according to some commentators consulted by beyondbrics. Continue reading »
No big surprises in the flurry of briefs in Argentina’s debt holdout saga then.
A quick recap: a US appeals court on October 26 upheld a court ruling by New York Judge Thomas Griesa that opened the door to Argentina making some payment of the “holdout” creditors led by Elliott’s NML Capital, which spurned its 2005 and 2010 restructurings of the nearly $100bn on which it defaulted in 2001. Judge Griesa had ruled on the basis of an “equal treatment” clause. Continue reading »
Here are a few back-of-the-envelope things to think about as we wait for Argentina to spell out its position in its brief to the court in the holdout saga on Friday:
1. This is, remember, a case in which there could be a technical default if money Argentina uses to pay the holders of bonds it exchanged in debt swaps in 2005 and 2010 – when it restructured nearly 93 per cent of the $100bn on which it defaulted in 2001 – is diverted to pay the litigants in the New York case, led by US hedge fund Elliott. Continue reading »