An unnamed banking executive tells Reuters that Argentine banks will offer to buy debt owned by holdouts investors in a bid to avoid default. They say that the banks still need to have negotiations with the holdouts.
Time is tight but that headline might be enough for the judge to grant a stay.
In any case, this sounds like very good news but it all depends how much the banks are willing to pay for the debt.
Update from Reuters:
Bank sources said a group of private banks in Argentina was working up a plan to offer up to $250 million as a guarantee to convince lead holdouts of the nation’s good faith and convince [judge] Griesa to re-establish the stay.
…
Argentina’s one-year credit default swaps dropped 51 basis points from Tuesday’s close to 4,708 basis points.
“It’s trading like there’s a deal,” said a fund manager who holds Argentina’s restructured debt and requested anonymity. “I don’t have information, but someone knows there’s a deal.”
A $250m guarantee might be too little too late.
