CORRECTED-Argentina bonds, CDS rally on proposal report

miércoles 9 de julio de 2014 13:53 GYT
 

(Corrects graf 5 details about bond payments from press report)

By Joan Magee

NEW YORK, July 9 (IFR) - Argentina's bonds and CDS are rallying this morning after a local press report said the government was mulling a proposal to make good on some of its disputed bonds without any haircut.

Five-year CDS on the sovereign tightened nearly 300bp to 1362bp this morning after the report was released by news website Infobae.

Meanwhile Argentina's discount 2033s, on which the country was supposed to make a payment at the end of June, were up three points to 92.00-93.00.

The Bonar 2017s were up 2.5 points to 97.50 mid-market, while the Bonar 2024s were trading up three points to 99.50-100.50. The Boden 2015s were up 2.5 points to 100.00.

Infobae cited a source close to the government saying it was considering a proposal to pay the holdouts with its 2024s, the same bond Argentina used to pay Repsol, and a new bond maturing in 2028, without a haircut.

"It's hard to tell with, but the situation seems to generally be moving in the right direction," said a senior emerging markets portfolio manager.

But a representative from one of the holdout creditors, which have rejected any debt restructuring, told IFR that he had not heard about the press report and said Argentina had not contacted them with any proposal.   Continuación...