Is it time to start crying for Argentina? Argentinian Bond Market is in turmoil not seen for many years. Right now Argentina is in danger of a calamity.
How did it all happen? It all happened when one hedge funder decided to make money off of Argentina distressed debt using a tried and true hedge fund strategy. That’s right, bringing a country to its knees is a “strategy.” According to a U.S. court’s ruling, if Argentina does not pay a group of hedge fund managers over $1.3 billion worth of bonds by July 30, the Republic could go into default. If it goes into default — investors lose faith its capacity to pay, interest rates on its bonds surge, and the country is forced to print money to pay creditors — its economy could tailspin.