Argentina Debt Dilemma Spotlighting Tangled Swaps Web
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Whenever the knotted world of credit-default swaps is pushed to the forefront in a financial crisis, conspiracy theories abound. Argentina is no exception.
Argentine Economy Minister Axel Kicillof described a group of so-called holdout creditors this week as “vulture funds” after failing to reach a restructuring agreement with them. Kicillof specifically directed his ire at credit swaps, a market, he said, that clouds the motives of creditors while leading to “the most wretched speculative capitalism that exists.”