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Argentine Bonds Soar To Record Highs As Hope Rules (For Now)

Tyler Durden's picture




 

While last night saw'The Holdouts' and 'The Argentina Delegation' come face-to-face for the first time in a decade for negotiations, when they went to bed late last night, there was no resolution. No news yet this morning of when the meeting will reconvene but it appears market participants are hopeful... The Argentina 2033 bonds are exploding higher. ARG 2033s are up over 10 points to a record-high price of 97.50. Let's hope they are not disappointed at the hopes for a bank bailout. Of course, we saw this kind of exuberant jump right after the initial pro-holdouts ruling drop...

 

 

This is what is driving the rally:

Members of Argentina's banking association, known as Adeba, are working on a last-minute plan to help the country avoid default, according to people familiar with the matter.

 

The bankers association's plan, which hasn't been completely hashed out among the banks, would entail buying the legal claim and paying off the holdout creditors who are suing Argentina in U.S. courts for full payment on bonds the country defaulted on in 2001.

 

In exchange, the banks would ask the holdouts to ask U.S. District Judge Thomas Griesa, whose ruling has barred Argentina from paying its restructured bondholders unless it pays off the holdouts, to suspend his ruling.

 

...

 

Another person said the idea is for the banks to buy the government's claim in three cash installments. In exchange, the banks would ask the government to pay them back in bonds beginning in January, when a key clause in the case expires.

Charts: Bloomberg

 

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Wed, 07/30/2014 - 09:38 | 5022205 astoriajoe
astoriajoe's picture

Hope... Now where have I heard that before?

Wed, 07/30/2014 - 09:42 | 5022224 espirit
espirit's picture

Might have to look into the other side of that trade.

Wed, 07/30/2014 - 09:46 | 5022256 nink
nink's picture

WTF next US will reporting 4% GDP

Wed, 07/30/2014 - 09:45 | 5022250 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Tyler, what time today does this charade end and the default is in the history books? Delusion has no end.

 

Wed, 07/30/2014 - 12:30 | 5022901 mtl4
mtl4's picture

You've heard it because Judge Gresia is hoping Paul will pay him all the Bitcoins he promised real soon.........

Wed, 07/30/2014 - 09:40 | 5022218 Dr. Engali
Dr. Engali's picture

Default bitchez!

Wed, 07/30/2014 - 09:45 | 5022245 RiskyBidness
RiskyBidness's picture

Happy Days are here again!!

Wed, 07/30/2014 - 09:49 | 5022257 yogibear
yogibear's picture

And the chearleaders come out and say all is well, right before the SHTF.

Lie until you can't.

The EU kept lying about the health of it's PIIGS. It's extend and pretend. It's what happens when you don't clear the debt and make the bond holders eat the crap.

Wed, 07/30/2014 - 09:48 | 5022266 asteroids
asteroids's picture

Where would these banks find the money to buy these bonds? Like magic, they would print it out of thin air of course.

Wed, 07/30/2014 - 10:09 | 5022378 headhunt
headhunt's picture

but wouldn't that debase their currency...

Wed, 07/30/2014 - 11:37 | 5022791 cro_maat
cro_maat's picture

This is government money laundering so that it doesn't look like the Argentina govt. paid this debt.

Wed, 07/30/2014 - 09:48 | 5022268 Peter K
Peter K's picture

Patriotic Bankers?

Wonder if these banks are owned by patriotic shareholders?

But hey, as long as Argentina pays its' debts, who am I to judge?

Wed, 07/30/2014 - 13:05 | 5023159 Quantum Nucleonics
Quantum Nucleonics's picture

Bankers are not patriotic, they ask for make-whole secret side agreements.

Wed, 07/30/2014 - 09:50 | 5022274 Sudden Debt
Sudden Debt's picture

The amount of money that's going to go up in smoke when everything implodes at the same time is going to be gigantic!

Wed, 07/30/2014 - 09:52 | 5022280 BeetleBailey
BeetleBailey's picture

Hope........rhymes with DOPE - which are anyone that buys into this shit.

Wed, 07/30/2014 - 10:00 | 5022321 Dien Bien Poo
Dien Bien Poo's picture

Fuck Paul Singer

Fuck Elliot Capital

Fuck Aurelius Capital 

Fuck Argentina

Fuck Lionel Messi

in that order. 

Wed, 07/30/2014 - 10:52 | 5022554 espirit
espirit's picture

Noticed that you didn't add Cristina to that list :)

Wed, 07/30/2014 - 18:29 | 5024716 Dien Bien Poo
Dien Bien Poo's picture

I subverted her under the Argentina nonemclature. But honestly, youre right.

Fuck Her too.

Wed, 07/30/2014 - 10:08 | 5022355 First There Is ...
First There Is A Mountain's picture

Argentina caving. No surprise there. Christina tried to play chicken but has swerved to avoid the head on collision. As much as Argentina might want to go it alone, i.e. limp along with Chinese and/or Russian handouts, she realizes the moneyed interests have her by the throat. She might find herself swinging from a lamp post otherwise. This will get settled today and not in Argentina's favor.....

Wed, 07/30/2014 - 10:07 | 5022359 headhunt
headhunt's picture
Argentine Bonds Soar To Record Highs As Hope Rules (For Now)

also known as; gather all the muppets and their money into one place and then slam the door.

Wed, 07/30/2014 - 10:19 | 5022424 QQQBall
QQQBall's picture

The plan - buy debt with more debt.

Wed, 07/30/2014 - 11:04 | 5022631 houseofchill
houseofchill's picture

Argentina must have figured out a way to pay interest on 93% of its bonds and Wall St is heavily short them. Rip them higher!

Wed, 07/30/2014 - 12:46 | 5023078 Starkman
Starkman's picture

As I just got done posting in another thread, who exactly is it that decides how much the bonds will rise, or how exactly are they raised. I mean, if it's government controlled, how are the bonds rising without anyone "in authority" able to stop it?

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