Argentina's NY-law bonds rally on settlement hopes

miércoles 3 de febrero de 2016 17:22 GYT

By Paul Kilby

NEW YORK, Feb 3 (IFR) - Argentina's New York-law sovereign bonds outperformed on Wednesday thanks to growing belief that a settlement with the country's holdout creditors could be on the cards.

Although worries about a sudden glut of supply kept a cap on enthusiasm, the New York-law Discounts were 75 cents higher to be quoted at 115.50-116.50.

Meanwhile Argentina's local-law Bonar 2017s were closing flat at 102.00-103.00.

The sovereign is holding talks in New York this week with the holdouts, and news that it has agreed to pay Italian creditors holding defaulted bonds added to the optimism.

Argentina's finance ministry said on Monday that a formal offer to holdouts could be on the table this week.

"Since they reached a deal with the Italian holders, we have seen more strength than we had previously," one New York-based broker told IFR.

But negotiations over what is now some US$9bn in unsettled claims are expected to be tough, and the legal battle has now dragged on for years.

The New York-law bonds have been in default since a US court last year blocked payments on them unless Argentina also made whole the litigant creditors.   Continuación...