Lat Am debt negotiations diverge with Argentina defiant

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By Oliver West
09 Jul 2020

Amid warnings about a looming debt crisis in emerging markets, bond investors this week hailed Ecuador as an example to follow in sovereign restructurings, while continuing their showdown with Argentina. Ecuador’s market-friendly philosophy appears to be paying dividends over Argentina’s more confrontational approach, but not every issuer is likely to follow its precedent, writes Oliver West.

Overwhelming liquidity in bond markets and a swift reaction from multilateral development banks have enabled emerging markets so far to avoid the broad credit crunch that was feared back in March as the Covid-19 pandemic swelled.

But the impact of the virus has been such that a wave of ...

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