Summary
Summary The Argentine Dilemma: “Vulture Funds” and the Risks Posed to Developing Economies
- Course
- Institution
its notes for Doyan's "The Argentine Dilemma: “Vulture Funds” and the Risks Posed to Developing Economies"
[Show more]
Seller
Follow
princeyork
Content preview
T.J. York213374939
The Argentine Dilemma
Doyran does a good job explaining the nature of vulture funds and the nature of transnational
finance to consider other potential issues. I want to rephrase something mentioned by Doyan in
defining vulture funds "...where holdout creditor through the secondary market buys distressed
assets at a discount, then refuse to participate in sovereign debt restructuring". So in other words,
holdout creditors have the most to gain (cited as over %1600 in returns) from a national default
that would likely allow them to buy cheap assets when national economies collapse (when
nations rely on the globalized/neo-liberal free market forces of transnational creditors who
purchase sovereign bonds or other investments). They refuse to participate because while they
could potentially make strategic gains through sovereign debt restructuring, they have more to
gain if they either get Griesa's ruling which would enact the RUSO clause, or if there is no debt
restructuring plan at all.
The other interesting thing this article mentioned was the conflict of interest essentially between
the IMF and U.S. Treasury represented through the Sovereign Debt Restructuring Mechanism
and Collection Action clause, as well the countries who supported and were against Argentina.
As to what that represents in my opinion should of been discussed, likely other veiled financial
interests of conflict, not fully covered in this article.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller princeyork. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.48. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79976 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now