By Dimitra Defotis
A handful of hedge funds and private-equity investors have started to tango with Argentina’s capital markets. No one can be quite sure where the dance will end.
The attraction: The prospect of an October 2015 election that could bring big changes and a boost to the markets. Left-leaning President Cristina Fernandez de Kirchner, who together with her late husband, Nestor Kirchner, has ruled the country since 2003, will step down because of term limits. She will leave an economic mess. In Argentina, inflation is at about 40%–though the state figure is 30%–and the U.S. dollar fetches 15 pesos on the black market, almost twice the official rate. The country is in default on a chunk of its sovereign debt, a situation that began in 2001, was nearly resolved in a 2005 restructuring, and came to a head again in July when holdout U.S. ... Read More