• 27 Mar 2014 at 6:42 PM

Who Wants To Buy Some Argentine Debt On Their Terms?

Even though they don’t accept the authority of American law or courts, the Argentines have decided to save themselves all of the legal fees should they miss a few bills this time around. Read more »

  • 18 Mar 2014 at 3:06 PM

Banana Republic Watch ’14: Argentina Gets Junkier

Emerging market investors looking to put their rubles elsewhere now that the Russian Empire Federation no longer qualifies (among other reasons) should probably skip that trip to Buenos Aires. Read more »

Paul Singer Explains It All

Fresh off a busy week in Davos, the Elliott chief pronounceth on the top issues of the day. For starters, he doesn’t get this whole bitcoin thing:

Paul Singer, founder of $23.3 billion Elliott Management Corp., told investors he was “shocked” by the virtual currency Bitcoin’s popularity and skeptical of its long-term prospects, according to a quarterly letter sent this week.

“There is no more reason to believe that Bitcoin will stand the test of time than that governments will protect the value of government-created money, although Bitcoin is newer and we always look at babies with hope,” Mr. Singer wrote.

Gold, however, he likes, even if he doesn’t fully understand what’s going on with it right now.

Mr. Singer encouraged investors to consider gold, which he wrote was “currently available at a good price….”

Gold is out of fashion, but we think the explanation for why it has been drifting down is not compelling. The economy seems stuck in the doldrums, but most so-called ‘experts’ have been changing their minds almost weekly about when they think the economy will finally begin a long-term acceleration to the upside,” Mr. Singer wrote in the letter.

He doesn’t like banks breaking the law and getting away with it.

“Lawlessness is a slippery slope,” the letter said, addressing one of the most controversial topics in financial services today, one seldom reported on or discussed in the media. “If a little ‘excess discretion’ is used… or a law is ignored in thousands of subtle ways, then over time the rule of law will be replaced by corruption and whim,” the letter said….

“Laws are not self-executing,” Singer wrote in the investor letter, as he cited a need for those entrusted to interpret the law and handle investigation and enforcement responsibilities to do so “with honesty and intelligence.”

He really doesn’t like all this talk about raising the minimum wage.

“Put bluntly, these policies would destroy jobs and cause companies and even entire industries to move elsewhere. These movements are politically motivated–a way for politicians to fake compassion,” Singer wrote in a letter to investors of his $23.3 billion Elliott Management on Jan. 27.

“If they gain traction, millions more people will make the transition from gainful employment to government dependency as jobs get priced out of existence by the rise in employment costs. Such policies would inexorably lead to lower economic growth, higher unemployment and a citizenry that is less and less self-sufficient.”

But most of all, he really, really doesn’t like it when hedge funds stupid enough to invest in Argentina’s post-haircut bonds waste his goddamned time with ridiculous pie-in-the-sky bullshit, when he and Cristina Kirchner could just hash the thing out over lunch. Read more »

  • 11 Oct 2013 at 5:51 PM

Argentina Will Pay Some Of Its Bills!

Maybe it would pay some others if certain vultures would just offer it a $3 billion loan? Read more »

Elliott Ready To Be Friends With Argentina

Elliott Associates has had its fun with Argentina, seizing its warships and suing it around the world and winning just about every important legal battle it has fought with the uniquely recalcitrant debtor over the latter’s 2001 default.

The thing is, though, Elliott can keep on winning those legal battles and it won’t matter a damn, because a uniquely recalcitrant debtor and a great disregarder of the rule of law Argentina may be, but it is also a sovereign country which no U.S. court can force to actually pony up the $1.3 billion it owes to Elliott and other hedge funds, especially if it’s actually willing to default again to avoid paying the “vultures.”

Well, now, while Elliott may have pushed Argentina to the brink of said re-default—it may not be eight days away from one like some countries whose courts keep interfering in its sovereign business, but it’s still seen as the most likely in the world to actually default—it doesn’t actually want to see that happen (because it means it will never see one red centavo of that $1.3 billion). So, with chief antagonist President Cristina Kirchner recovering from brain surgery, Elliott thought that now would be a good time to extend its first olive branch. Read more »

The highest court in the land has no time—at least not yet—to hear why Argentina’s president thinks she shouldn’t have to pay her country’s bills. Instead, the Supremes will entertain themselves with the endlessly-amusing R. Allen Stanford story, and whether or not people who lost money with him can sue people who are not him. Read more »

  • 09 Sep 2013 at 2:57 PM

Paul Singer Did Pretty Okay For Himself Last Month

Elliott performance. Read more »