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Argentine Default - Essay Example

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The paper "Argentine Default" tells us about that Argentina's bondholders sued to be repaid 100% of their bonds' face value. Among the bondholders were vulture funds, who had speculatively acquired US$1.3 billion of the bonds' total value on the secondary market for cents on the dollar after the 2001 default…
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Argentine Default
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Extract of sample "Argentine Default"

This particular article draws particular attention to the very real threat of default facing Argentina for the second time in just over a decade.  As a way of referencing this threat, the author discusses history and reveals the fact that the last default was extraordinarily damaging for the political system, as well as the people, of Argentina.  As such, the current situation is one that creates uncertainty about how Argentina will continue to service its obligations and provide assurances to bondholders that it will make good on its promises.

For S&P, Strategists' Forecasts Fall Short 500-Stock Index Has Risen Faster Than Expected; Doubt Over Future Gains

This article details the way in which stock outlooks have overperformed for the period of 2014.  In the case of the S&P 500, analysts predicted a modest and steady growth of around 4-5%.  However, the case that has been realized is one that shows a continual growth rate of up to 7% year to date; with more than half of 2014 still left to unfold.  This creates a situation in which analysts further indicate that a high likelihood for retraction and negative growth exists within the market; due in part to the fact that stocks have risen too quickly and the market will find it necessary to adjust itself to the new realities at hand.

J.P. Morgan Questioned for Conflicts of Interest

The article illustrates the relevant conflict of interest that exists for many large banking/investment organizations within the current global marketplace.  Even as J.P. Morgan Chase indicates that it had no direct training or supervision by its staff members to lead clients towards J.P. Morgan Chase banking solutions as compared to those of their competitors, the potential for this to take place illustrates the danger that conflict of interest has in a market that is increasingly less saturated and increasingly less diverse. 

“Luxembourg Covets Offshore Trade in China's Yuan”

This article illustrates the way in which the rise of China is being reflected within the banking and investment sector.  As investors seek to hedge their bets, the desire to hold foreign currency of a rising China has come to be a hallmark of hedge fund management and wealth integration.  The case of Luxemburg serves as a perfect example of how globalization and the decreasing importance of the dollar is being exhibited on the global stage.

Herbalife Feud Gets Personal

Finally, the short article concerning Herbalife details the interesting dynamic that exists between negative publicity and publicity.  As one of the initial investors of Herbalife has come to view the entire firm as nothing more than a pyramid scheme, his antics to discredit the company have in fact earned the company more revenue with each petulant episode that is illustrated within the financial press.  This interesting dynamic shows the reader that even though negative press can be damaging, it is not always the case that it is detrimental in every situation.

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