Argentina defaults…AGAIN!

by The Daily Lede

Argentina has defaulted on it’s debt obligations and may trigger bondholder claims of as much as $29 billion, equivalent to it’s entire foreign currency reserves.

Bloomberg points out that If the overdue interest on Argentina’s dollar-denominated securities due 2033 is not paid by July 30, provisions in bond indentures known as cross-default clauses would allow the nation’s other debt holders to also demand their money back immediately.  The amount corresponds to Argentina’s debt issued in foreign currencies and governed by international laws.

Over the last two days buyers of Argentinian bonds have pushed the debt instruments to all time record highs.