Argentina CDS and bond spreads jump as investors seek reforms
Argentine’s CDS have increased sizably in the last few days. The considerable change shows how drastic and fast the changes in the CDS can be, especially when sovereigns are concerned. Argentine also has a history of defaults. This opens a whole new dimension to Deriveum use. In our examples Deriveum is used with clear separation of bond interest between CDS holders and counterparties. However in case of a violent swing it is very likely that some conservative investors may desire to purchase certainty, even at a loss. And the only way to get certainty remains using Deriveum for both foreign currency and domestic currency loans.
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