Argentina’s deal with the holdouts is a mixed blessing (Mario Blejer)

0be943c9-d94f-46e8-a752-4d76a62586be“In the absence of a multilateral framework, what is convenient for an individual country could have negative consequences for the international system as a whole. […] Standard bankruptcy procedures treat creditors equitably, minimising economic damage by resolving things fast. In this case, inequality among creditors caused maximum economic harm. It underlines the need for a sovereign debt restructuring mechanism.”

Read Mario Blejer’s full article at http://on.ft.com/1M3GwWE

Fears mount over rise of sovereign-backed corporate debt

Quasi-sovereign bonds pose a challenge to future restructurings of emerging market sovereign debt, the FT reports.

5398456b-e363-4704-b80a-6184cbb44633“More than $800bn of emerging market sovereign debt is being camouflaged by the growing use of bonds that offer implicit state backing without always appearing on government balance sheets, according to new research.”

Read the full story here.