At the beginning of this week, a joint statement was released from the three major bondholders’ groups (Ad-Hoc, Exchange and ACC) rejecting the "final" proposal to exchange bonds with foreign law. Although in legal terms they accepted some proposals made by the government, in terms of present value the new counterproposal presented by the bondholders differs by approximately USD 3 compared to the last Argentina offer. In several public statements, Guzmán again expressed that the offer made was the last and that it is the greatest effort the country could make. If these three groups of bondholders finally reject the proposal, the swap runs the risk of not being carried out due to their high holding percentages and the minimum participation threshold that was incorporated in the amended prospectus. We are cautious about the government's ability to negotiate with these groups, but we also believe that the distance that separates the two offers is relatively small to end in a total breakdown of negotiations and taking into account their level of progress.
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Fixed Income Weekly