Argentina Reported in Swap Extension

Argentina is reportedly extending by 2 weeks the deadline for investors to participate in its defaulted debt offer, which has thus far been poorly received. Wires late Monday cited remarks from economy minister Amado Boudou and his spokesman confirming the delay. According to Dow Jones, Boudou expects investors to swap at least 60% of the defaulted debt eligible for the exchange. Only $8.5bn in bonds had been tendered by the May 14 deadline for institutional investors, little over 45% of the $18.6bn the sovereign admits to owing. Retail investors had until June 7 to commit, but their interest was understood to be limited. Barclays is global coordinator, with Citi and Deutsche as joint dealer managers. Meanwhile, holdouts are gaining traction with legal action, securing restraining orders on the sovereign’s assets.