The perception of defaulted sovereign debt investing has swayed between a masterful strategy and a divisive one that preys on poorer nations. To help us make sense of this, we are joined by one of the godfathers of sovereign debt investing, Jay Newman. Jay has had a remarkable career in international finance, he’s a trailblazer in sovereign debt investing, and now, with his first novel, Undermoney, he has also cemented himself as a captivating author. After learning about Jay’s roots and history in finance, he gives us his definition of sovereign debt investing and how he and his company helped to develop the strategy. Then, we dive into the 15-year saga that concluded with one of the biggest hedge fund trades in history: Argentine bonds. Jay gives us his first-hand experience of the drama including how Argentina acted throughout, how he dealt with pitfalls and challenges, Argentina’s fatal mistake, his asset seizure strategy, and the lessons that can be learned from the seizure of The Libertad. We also discover how the Yegiazaryan v. Smagin ruling of 2023 affects sovereign debt investing, what Jay has to say about the negative perceptions of sovereign debt investing, and the ins and outs of his enthralling debut novel, Undermoney.
Key Points From This Episode:
Links Mentioned in Today’s Episode:
Default: The Landmark Court Battle over Argentina's $100 Billion Debt Restructuring
‘22-381 Yegiazaryan v. Smagin (06/22/2023)’
‘Peter Clement Returns: The Death of Wagner Leader Yevgeny Prigozhin’