Franklin Templeton and its star money manager, Michael Hasenstab, have $4.3 billion worth of Argentine bonds as the country marches towards restructuring, Bloomberg reported.
Officials in Argentina say the restructuring agreement will not do any favors to investors, Bloomberg reported.
Hasenstab made his name by making big bets on sovereign debt, but this may be a position he struggles to find upside from.
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In a week where the country announced it would push back a $1.4 billion payment on local debt, many would agree it’s a bad time to be invested in Argentine debt. Asset management firm Franklin Templeton and its star investor Michael Hasenstab hold billions in it.
Bloomberg reported Friday that the firm holds at least $4.3 billion worth of Argentine bonds, at par value.
That’s as it’s becoming increasingly likely that the government will have to restructure its debt. The country’s Economy Minister Martin Guzman said Wednesday that Argentina won’t let international financial firms “set the guidelines on macroeconomic policy.” Instead, he said, the debt restructuring will be focused on reviving the Argentine economy after its currency and economy collapsed — that won’t entail attractive terms for investors, Bloomberg reported.
Argentina’s …read more
Source:: Businessinsider – Finance