Tier 2 Argentina

• [MISLEADING] US billionaire investors accumulated Argentine dollar debt at distressed prices (15-30 cents on the dollar) following Milei’s reforms, with positions rising to 50-80 cents on the dollar.

  go back two or three years, four years, that debt’s trading whatever it was, 20 cents on the dollar, 15 cents, 25, 30 cents. And by going in and doing all the thing Malay did, it goes up to 50, 60, 70, 80 cents on the dollar

  • Correction: Argentine debt did trade at distressed levels (15-30 cents on the dollar) historically, but this was primarily due to the 2001 default and subsequent litigation, not Milei’s specific reforms. Post-2020 restructuring, debt prices had already recovered significantly before Milei’s December 2023 inauguration. The 50-80 cent range cited may represent specific bond series but should not be generalized to all Argentine sovereign debt without distinguishing between pre- and post-default series.
• [UNVERIFIED] The US provided approximately $30 billion in financial support to Argentina, benefiting hedge funds including Shiprock Capital, Pomearitum, and Amia Capital, which reportedly achieved double-digit returns from the arrangement.

  bailing out Argentina to the tune of $30 billion… Shiprock Capital, Pomearitum, and Amia Capital. All right. All had double-digit returns based off of the US going in and bailing out Argentina.

The Thesis

• [UNVERIFIED] Over the past 40 years, Argentina has required nine bailouts from the International Monetary Fund (IMF), in addition to 24 other instances of assistance.

  Argentina over the last 40 years has been bailed out out by the IMF nine times. That’s not counting the 24 other helping hands that the IMF gave them.