Argentina Elections Could Benefit Holdout Hedge Funds

The election results in Argentina “surpassed even the most optimistic of market expectations,” a Deutsche Bank report noted, as Credit Suisse observed the resulting market rally based on the “market friendliest” candidate with apparent cautious optimism. The real winner in the election derby could be the holdout hedge funds who own Argentine debt. If the expected winner prevails, they might not have to resort to hunting down and then confiscating Argentina's presidential planes and naval vessels to ensure payment on sovereign debt, the government might actually be willing to negotiate in good faith, something that was reported to be lacking from the previous interaction nearly one year ago in New...