"US Treasury Secretary Scott Bessent comes to the rescue of hedge funds including BlackRock, Fidelity, Pimco and Discovery Capital Management, all of which bought Argentine bonds. Several fund managers share a professional past with the US official."
"US Treasury Secretary Scott Bessent’s intervention in Argentina seems aimed more at saving his friends than at helping the nation, at least one leading economist has alleged."
"Several hedge funds with past professional ties to the Treasury Secretary hold major positions in Argentine bonds. Washington’s US$20-billion swap package seeks to shield their returns."
"According to The New York Times, the financial assistance will benefit 'investment firms such as BlackRock, Fidelity and Pimco, which are heavily invested in Argentina, as well as investors like Stanley Druckenmiller and Robert Citrone, who worked with Bessent when he was investing for George Soros.' "
"Specifically, Argentina faces debt payments in January and July next year amounting to roughly US$8.5 billion in bonares and globales bonds, with 85 percent believed to be in private hands."
"Nobel Prize-winning economist Paul Krugman has written two articles about Bessent’s proposed rescue plan. In a recent blog post, he noted that 'some US hedge-fund billionaires, personally close to Bessent, bet big on Milei and bought Argentine bonds.' "
“ 'The bailout package almost surely won’t succeed in turning Argentina’s economy around and probably won’t rescue Milei politically. But it may buy enough time for Bessent’s buddies to get much of their money out before the bottom falls out of the Argentine economy,' Krugman adds."
https://www.batimes.com.ar/news/economy/bessent-steps-in-to-protect-profits-of-friendly-investors-in-argentina.phtml
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