New Distressed Trade Forum Coming Soon

Restricted Stock Partners (RSP) has acquired Trade Receivable Exchange (T-REX), paving the way, potentially, for more transparency in LatAm distressed trade. The platform, which will start trading next Monday, will accept claims on any situation judged in the US. This would include ICSID claims, says RSP CEO and founder Barry Silbert. “Provided there’s buyers, and provided we can handle the settlement,” he adds. ICSID claims on Argentina are heard trading illiquid in the secondary market, while the sovereign continues to have legal issues related to the 2005 restructuring. There are a number of other special situations developing in LatAm. Hedge fund Gramercy Advisors identifies 57 LatAm corporate bond issues with a face value of almost $20 billion trading in the 70s. They include Durango, Vitro, Province of Buenos Aires, Transportadora de Gas del Sur, and Transtel. JPMorgan notes that Durango is struggling with its balance sheet and may struggle to meet coupon payments. Over the next 12-24 months, Gramercy expects to see a number of defaults, fueled by the last five years of excess borrowing and pushed over the edge by evaporation in liquidity. RSP estimates the global bankruptcy trade claims market to be worth $75 billion.