Wall Street analysts believe that Argentina’s debt will trigger credit default insurance (CDS)

The fund committee should evaluate whether the country entered a “credit event” by not paying $503 million. Non-payment sets up a default that will end up triggering the Credit Default Swap (CDS). It does not change the situation of the sovereign issuer, Argentina, since it is an agreement between private parties: the fund that took out insurance on its Argentine bonds will be able to deliver them to the entity that has insured them in exchange for compensation. According to market estimates, this situation could trigger payments of between $1.3 and $1.5 billion.

Source: Ámbito