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The Case Against "Vulture Funds"

By Cecilia Nahón

We need a global solution.

Sovereign debt markets are in dire need of reform. Argentina’s recent experience with “vulture funds” has been a watershed case in sovereign debt restructuring. After the U.S. Supreme Court denied the country’s appeal in 2014, Argentina presented its argument for reform to regional and international fora. Today, the UN, the IMF, and the G20, among others, are working to address this issue.

The Argentine case has brought two main issues to the forefront of the global financial agenda. First, the world has expressed its concern about the predatory behavior of vulture funds, which buy...

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