See the attached for an important announcement by the Brasil Sovereign II Fundo de Investimento de Divida Externa… (H/T Bloomberg)
This would be that the fund’s net asset value has been cut in half, by $87m, after it transpired Argentine sovereign bonds — the ones Argentina defaulted on last week — did not make very good collateral for credit-linked notes which the fund owned.
Why buy credit-linked notes referencing Argentine sovereign debt? Why would you do that?
We’re not sure. But there it is.
Oddly enough, the fund’s administrator is BNY Mellon. Which has also been the luckless trustee for… Argentina’s restructured bonds.
Related links:
Pari passu saga - FT Alphaville
How about some Banco Espirito Santo loan credit-linked notes instead? – Bloomberg
Pari passu saga - FT Alphaville
How about some Banco Espirito Santo loan credit-linked notes instead? – Bloomberg
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