Secondary Ruling Against Argentina Has Intimidating Bite

The headline ruling in yesterday’s battle between Argentina and what are known as the “hold out hedge funds” was that Argentina cannot compensate those who agreed to a settlement without compensating holdouts as well.  In regards to this, the deep pocketed holdouts are likely waiting by their phones for Argentina’s President Cristina Kirchner to make the first move in this chess game.

But it was the second ruling that likely might be the motivator that changes outcomes.  This is where NML Capital, one of the hedge fund holdouts operated by Paul Singer, was granted discovery into Argentina’s global financial transactions....