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Mark Weidemaier
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Mark Weidemaier & Mitu Gulati Over the past week, we’ve discussed various uncertainties over how to interpret the new “uniformly applicable” standard added to aggregated Collective Action Clauses starting in 2014 (here and here). Anna Gelpern’s recent post neatly clarifies... Continue reading
Posted Nov 6, 2019 at Credit Slips
Mark Weidemaier and Mitu Gulati We hope readers will forgive our trafficking in rumors, but this one is interesting and raises some fun and wonky questions about the relationship between Argentina’s different bonds. We talked about those differences in our... Continue reading
Posted Nov 4, 2019 at Credit Slips
Mark Weidemaier & Mitu Gulati Okay, everybody ready? Argentina? Check. Debt crisis? Check. Cristina Kirchner and crew back in office to, um, right the ship of state? Check. Last time round, their plan involved hurling insults at a U.S. federal... Continue reading
Posted Oct 29, 2019 at Credit Slips
Mark Weidemaier & Mitu Gulati Along with Ugo Panizza of the Graduate Institute in Geneva, we’ve put up a couple of posts in recent days asking whether Venezuela might have a legal basis for challenging its obligations on the PDVSA... Continue reading
Posted Oct 12, 2019 at Credit Slips
Mark Weidemaier & Mitu Gulati Writing with Ugo Panizza, we have a piece out today on Project Syndicate (Should Creditors Pay the Price for Dubious Bonds?) discussing the collateralized bond issued by Venezuelan state oil company PDVSA (the PDVSA 2020... Continue reading
Posted Oct 9, 2019 at Credit Slips
Mark Weidemaier and Mitu Gulati We may be partly to blame for the fact that stories keep surfacing about whether the U.S. government might help holders of pre-revolutionary, defaulted Chinese debt monetize their claims. Here’s Tracy Alloway of Bloomberg, with... Continue reading
Posted Sep 10, 2019 at Credit Slips
Today, the U.S. Court of Appeals for the Third Circuit affirmed the order allowing jilted Canadian mining company Crystallex to attach PDVSA's equity stake in PDV-Holding (the corporate parent of CITGO). Here's the unanimous opinion. (For prior coverage of the... Continue reading
Posted Jul 29, 2019 at Credit Slips
Mitu Gulati & Mark Weidemaier The two of us are beginning a project to build a dataset of foreign currency sovereign bonds and their contract terms. The dataset of bond issuances has a conspicuous absence: India. Turns out India has... Continue reading
Posted Jul 27, 2019 at Credit Slips
Tim Worstall: Yes, indeed they were--for French bondholders if memory serves. The PRC did the same for British bondholders in the 1980s. No question the US could broker a similar deal here. But to (legally) use the debt to set-off the US national debt...? Not so much.
Mark Weidemaier & Mitu Gulati About a year ago, an unusual securities action was brought against a pastor at one of the largest Protestant churches in the country and a financial planner. The accusation was that the two, Kirbyjon Caldwell... Continue reading
Posted Jul 21, 2019 at Credit Slips
Mark Weidemaier and Mitu Gulati Last week, we did a post about a set of creative but long shot defenses that Venezuela’s Interim Government has invoked to defend against lawsuits by creditors holding defaulted debt. Basically, the government wants a... Continue reading
Posted Jul 11, 2019 at Credit Slips
Mitu Gulati & Mark Weidemaier Last Friday, the Venezuelan government (at least, the representatives of that government recognized by the U.S.) issued a set of broad principles it intended to follow when it conducted the debt restructuring that is going... Continue reading
Posted Jul 7, 2019 at Credit Slips
Mark Weidemaier & Mitu Gulati As reported in the Financial Times, Reuters, and elsewhere, Juan Guaido’s economic and legal team has released a report setting out guidelines for a restructuring of Venezuelan debt. The report, attached here, describes a process... Continue reading
Posted Jul 6, 2019 at Credit Slips
Mark Weidemaier & Mitu Gulati There have been relatively few recent developments regarding Venezuela’s debt, as Maduro hangs on to power and U.S. government sanctions bar trading or restructuring of Venezuelan debt by U.S. persons. However, at least one important... Continue reading
Posted Jul 4, 2019 at Credit Slips
Mark Weidemaier & Mitu Gulati Wolfgang Munchau’s column in the FT yesterday identifies a possible Italian debt crisis as one of the biggest worries for the Eurozone. This makes sense, given Italy’s huge debt stock (upwards of 130% of GDP),... Continue reading
Posted Apr 29, 2019 at Credit Slips
Mitu Gulati and Mark Weidemaier We have previously discussed how Euro area sovereign bonds with Collective Action Clauses or CACs (issued after Jan 1, 2013) and without CACs (issued prior to Jan 1, 2013) potentially differ in their vulnerability to... Continue reading
Posted Feb 19, 2019 at Credit Slips
Mark Weidemaier and Mitu Gulati A few days ago, we wondered why the U.S. government had constrained U.S. holders of PDVSA debt instruments to sell only to non-U.S. parties. The constraint would likely kill liquidity for these bonds and impose... Continue reading
Posted Feb 4, 2019 at Credit Slips
Mitu Gulati and Mark Weidemaier Beginning January 1, 2013, Euro Area authorities required member countries to include “collective action clauses,” or “CACs,” in sovereign bonds with a maturity over one year. CACs are a voting mechanism by which a bondholder... Continue reading
Posted Feb 3, 2019 at Credit Slips
Mark Weidemaier and Mitu Gulati We gather that there is still activity in the U.S. government to think through the implications of the recent expansion of sanctions against Venezuela. Here’s the original version of the most relevant Executive Order. In... Continue reading
Posted Jan 29, 2019 at Credit Slips
Mark Weidemaier and Mitu Gulati Even by the eccentric standards of its ongoing debt crisis, weird things are afoot in Venezuela. Opposition leader Juan Guaidó has declared himself president and been recognized by the U.S. and other governments. That’s not... Continue reading
Posted Jan 29, 2019 at Credit Slips
Mitu Gulati & Mark Weidemaier Last week, the Government of Puerto Rico, acting through the Financial Oversight and Management Board (and in conjunction with the creditors’ committee), filed a claims objection seeking to invalidate roughly $6 billion of its General... Continue reading
Posted Jan 23, 2019 at Credit Slips
Mitu Gulati & Mark Weidemaier More and more creditors are filing lawsuits against Venezuela, and we had been planning to do a post on how the dominos were falling. But then we came across a piece by Ben Bartenstein of... Continue reading
Posted Jan 14, 2019 at Credit Slips
Max: Neither is really about odious debt, though the loan to the Yanukovich government has some of those hallmarks. Unlike odious debt, for example, duress doesn't ask about the legitimacy of the borrower government or whether the loan was used to advance citizen welfare.
Ted Edwards: It is interesting to speculate, for sure. Certainly the Russian government isn't trying too hard to make friends in London... And you're right that the judges were more willing to tackle the underlying politics than I had expected. If this goes to trial, it will be hard to avoid those arguments now.
Ukraine and Russia have been battling it out in English courts over whether Ukraine must repay a $3 billion Russian loan from 2013. The loan was unusual both in structure and in substance. For example, although essentially a bilateral loan,... Continue reading
Posted Sep 14, 2018 at Credit Slips