Argentina’s D-day & what it means for restructuring

Barring an eleventh hour deal out of the blue, Argentina’s ninth sovereign default will be confirmed on Friday and, while this event is unlikely to surprise many in the markets, it will up the ante on debt restructuring talks. For our part, we think there is a growing risk that the restructuring talks drag on into next year, and that recovery values on international bonds will be as low as 30 cents on the dollar.