Prof. Jayanth R. Varma’s Financial Markets Blog

A blog on financial markets and their regulation

More on who owns the bonds?

The issue of
who owns the bonds
is still not fully resolved.

Bloomberg
quotes the New York judge as saying ‘Both sides have raised serious
issues, good faith issues’.
The judge ruled that the creditor could not seize the defaulted bonds held by the
the exchange agent for swap becuase these bonds still belong to the bondholders not
to Argentina. But, he then went on to say that the creditor may be entitled to
attach Argentina’s right to receive the bonds, if not to attach the
bonds themselves before the exchange takes place.

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