Just as Argentina concludes the restructuring of its defaulted external debt, another sovereign default looms in the Philippines. Many analysts and investors are aware that the fiscal position of the Philippines is very similar to the fiscal position of pre-default Argentina. However, the social and political similarities between the Philippines and pre-default Argentina continue to be overlooked. The risk of default in the Philippines is much higher than is generally believed.
Out With The Old, In With The New
In early March, Argentina's government is expected to announce that about 70% of the country's bondholders agreed to swap defaulted debt for new bonds, taking a capital haircut...
