Buenos Aires Stock Exchange

Argentine bond prices rallied on Thursday after fears of an imminent debt default receded when a U.S. appeals court gave the country an unexpected reprieve in a legal battle with holdout creditors.The 2nd U.S. Circuit Court of Appeals' decision to grant an emergency stay order gives Argentina more time to fight a ruling favoring "holdout" investors who rejected two restructurings of defaulted bonds to fight for full repayment in the courts.It delays a ruling on whether Argentina will have to pay $1.33 billion to the holdouts until late February at the earliest, quelling investor fears of a default next month when some $3.3 billion in repayments are due."It's very positive because (the U.S. court) has pushed out the stay order until March and that means the government gets more time to see what it can do," said Kevin Daly, a portfolio manager at Aberdeen Asset Management in London.The cost of insuring Argentine debt against default tumbled across the curve and bond spreads - measuring d...

Read More ›