Argentina and the Vulture Funds | My Paper Hub

Argentina and the Vulture Funds


Role played by legal clauses like the collective action clause and the pari passu in sovereign debt issuances Anytime a default on payments takes place, what follows is the debtor entering into talks with the creditors to restructure the debt ...Read More


~Posted on Jan 2019

keywords,blog

Role played by legal clauses like the collective ...

Role played by legal clauses like the collective action clause and the pari passu in sovereign debt issuances

Anytime a default on payments takes place, what follows is the debtor entering into talks with the creditors to restructure the debt obligation. The collective action clause imposes reorganizational terms to all creditors that are similar. The reorganizational terms must, however, be agreed upon by a specific percentage of lenders from 75% to 90%. The collective action clauses prevent the small number of creditors (25% and below) from blocking the restructuring. The pari passu on the other hand calls for equal treatment for all creditors. The clause, therefore, ensures that there are no preferences to some creditors over the others (pg. 231).

The difference between vulture funds and a typical hedge funds investing in sovereign debt.

The typical hedge fund purchases a substantial amount of the distressed corporation hence becoming an integral part of the saving of the company from plunging into dissolution. However, hedge funds investing in sovereign debt take the model of vulture fund where they have made the buying and selling of the traded distressed debt a form of business. Through this, they are able to make supernormal returns within a very short period. The same time it would take to fall into financial distress. However, firms like Gramercy protect themselves from falling by using credit default swaps (CDSs) (pgs. 232- 234).

Alternatives for resolving the crisis.

The crisis where the country is unable to pay its debts is as a result of the adverse effects of vulture fund activities. Therefore, before any restructuring of the legal debts, the country should make changes which will ensure that there are adequate regulations of the vulture fund activities. The country should have an independent body that assesses debt sustainability in the country and comes up with other strategies for resolving the issue rather than relying on the vulture fund alone (Kanaga).

Calculate The Price Of Your Order

  • School
  • College
  • Bachelor
  • Master
  • Phd
  • Specialized
  • 14 days
  • 7 days
  • 5 days
  • 4 days
  • 3 days
  • 48 hours
  • 24 hours
  • 12 hours

Order Price:

x

Total Price After Discount:

x

Frequently Asked Questions

All our writers are PHD prepared individuals. All the writers have vast experiences in specified fields for example for nursing orders the writers must have (nursing experience and major exposure to healthcare)

We get our articles from PubMed (for medicine orders and nursing) and whatever we can access through Google and scholarly references. We use professional sites and any relatable recent references within ten years.

We have a strict 0% plagiarism policy. All our papers are written from scratch and are properly cited. Furthermore, we use premium plagiarism checkers to scan all documents before delivery. The paper you will receive will be 100% original.

Email everything to us at orders@mypaperhub.com. You will receive a confirmation email from the support staff. First, proceed to place your order then you can attach and send everything else the writer will need via email.

Yes, any alterations will be free of charge as long as they are in line with the initial instructions provided. No "surprises" regarding the price.

Any feedback from her professor will be taken seriously, and the writer (under our terms) will work on all changes without any extra payments (we do not have any hidden charges).

We will conduct a free plagiarism check, chapter by chapter. Editing is free of charge since the writer works hand in hand with an assigned editor.

The account will automatically be created for you by our database. The account only notes your order details and the price for your order, nothing much.





Our Featured Services