The conventional wisdom is that Argentina is starved for capital. Really? Is it true?
When you look at Argentina’s balance of payments, low foreign currency reserves and need to import more oil, it’s easy to agree on a need for capital, but don’t judge too quickly.
What would happen if Argentina thought about using the buyout techniques that hedge funds have used for years to create huge returns for the nation’s treasury? The answer is clear. The situation in Argentina would immediately reverse itself, money would start flowing in to the country.
As a financial buyer, Argentina could acquire the YPF shares that it expropriated this week from Repsol at fair value and under its own terms.