Clauses & Controversies

Featuring Ben Heller, the podcast delves into El Salvador's unique bond issuance with a warrant tied to IMF deal and credit rating. The discussion highlights the complexities of financial warrants, governance-linked bonds, and the debate surrounding bond proceeds for buybacks. It also emphasizes the importance of transparent EM debt contracts for investor clarity.

The Latest in the Argentine GDP Warrant Saga: Drafting Goof or Sneaky Drafting? There are so many intriguing aspects of the latest installment of the Argentine GDP Warrant Saga. This time, from Judge Preska in the SDNY, Argentina scores a big, and for us, totally unexpected victory. Argentina’s lawyers, at a very late stage, discovered a magic bullet that no one seems to have realized was there. Mark doesn’t like to use the term “contractual landmine”, but he does here. Mitu applauds. Producer: Leanna Doty

Jerome Sgard discusses the 1980s debt crisis and the Brady Plan, unraveling the hidden history of sovereign debt crises. Topics include the complexities of restructuring, sovereign debt litigation dynamics, and the US government's position. Explore the non-contractual nature of standby agreements, secret buybacks, and strategies for market re-entry.

Financial experts Ingrid Brunk and Paul Stephan discuss utilizing frozen Russian assets to aid Ukraine, exploring legal complexities and political implications. They delve into asset confiscation proposals, navigating reparations, and addressing global financial risks amidst de-dollarization trends.

Confusion surrounds the treatment of Ukrenergo bondholders in debt restructuring. The podcast explores complexities of Ukrainian bond guarantees, modification implications, and interactions with the IMF. Discussions on state-owned companies efficiency, financial restructuring, and guarantee implications for Ukraine add depth to the episode.

Discussion on the impact of lifting sanctions on purchasing Venezuelan bonds, influencing geopolitics and bond ownership. Kejal Vyas sheds light on the policy shift and complexities surrounding Venezuelan debt restructuring amidst US sanctions and lobbying efforts.

Exploring the implications of a legal decision on financial bonds, focusing on the validity of collateral under Venezuelan and New York laws. Analysis of the New York Court of Appeals ruling and criticism from market reactions. Discussion on the prevalence of local law provisions in sovereign bonds and the importance of clear authorization processes for corporate and state-owned bonds.

Discussing the sudden surge in value of Ukrenegro bonds after creditors wanted separate debt talks, exploring the unique arrangement with certain bondholders and legal dynamics. Analyzing financial responsibilities of state-owned enterprises and recent price movements of sovereign guaranteed debt. Delving into the complex dynamics of creditor behavior in Ukraine's financial aid and restructuring amidst conflicting interests and political pressures.

Back to the Future (Again) -- Russian Frozen Assets Episode In recent months, there has been much talk about what to do with frozen Russian assets and, in particular, whether they can be repurposed to aid Ukraine in its fight against the Russian invasion. This is not the first time that large amounts of Russian assets have been frozen though, with heated debates about whether to expropriate the frozen funds. In this podcast we talk to Professor Lauge Poulsen of UCL about one of these prior freezings, from the early 1900s. Indeed, the 1918 default of Soviet Russia on investors in Tsarist Russian bonds is still one of the largest ever sovereign defaults and it (along with other expropriations) then resulted in widespread freezing of Russian assets overseas. Lauge and his co author, Eileen Denza, have a fascinating article about the negotiations between the UK Foreign Office and the Soviets over these frozen assets and the ultimate resolution of all of the various claims and counterclaims (a process that took close to three quarters of a century). The article, “Settling Russia’s Imperial and Baltic Debts” appears in the American Journal of International Law. Producer: Leanna Doty

Mitu and Mark discuss the recent debt restructuring by Tierra del Fuego, highlighting coercive tactics like rewarding early consent. They speculate on broader patterns and potential conspiracy theories. The podcast also delves into ethical considerations in financial transactions and the treatment of bondholders in exchange offers.