Latin American investors brace for continent's biggest default

Thursday, October 31, 2013

OGX files for protection from creditors as company becomes largest Latin American corporate default

TAGS: Emerging markets Default

Comment by: Anonymous. Posted 10 years ago [2013-11-01 01:23:01]

Bonds are trading at 8% of par - isn't that surprising? One's first reaction is that oil fields would serve as assets available to creditors. But one FT article notes that "the oil regulator .... has the right to confiscate the oil concessions". So there are no oil assets. Perhaps there's a lesson here in credit underwriting.

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