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Wow! I take it all back...Argentina wants to do a deal on the debt holdouts

The funniest thing is that they're offering about the same as they did in 2005, and much less if you take into account opportunity cost.


Ok, trying to keep a straight face about this one, La Nacion is running a good article that tells how the three banks involved, Citi, Deutsche and Barclays, think they can get about 50% of the holdouts to accept a deal at $0.32 to the dollar on the lapsed bonds (they traded at $27 last week, to give you an idea..that's 0.27 on the dollar) because the ATFA vultures are tired of trying to bullyboy their way to a better deal and will take whatever is offered.

Nobody quite knows the exact number, but the best estimate is that there are U$23Bn of holdout bonds out there. So Klishtina can theoretically mop away half of that for U$3.68Bn. A nice bargain compared to the $6.7Bn she's shelling out to get rid of the Paris Club once and for all, and a small slice of the U$50Bn international reserves tucked away at the BCRA.

So the same people who said no to 30c on the dollar three years ago will take 32c, or if you like 6.66% compounded interest over three years.......nice going, ATFA boyz!

South America 2, North America 0