If Argentina can’t fight hedge fund buzzards, can Greece?
— The Globe and Mail
While you were wondering what a Greek sovereign default might look like, an Argentinian one has been brewing in a New York court room. A U.S. District Court judge yesterday ordered that Argentina fully repay $1.3-billion to a group of hedge fund creditors which refused to accept debt restructurings that included savage haircuts. In so doing, the judge tossed a judicial grenade into the precarious matchstick palace that is Argentina’s public finances and sent the country’s bond yields soaring even above the level of Greece.