On March 29, as ordered by the Second Circuit, Argentina submitted its offer to its creditors who have been unwilling to exchange their securities for new securities Argentina issued after its default. I have to say that I don’t really understand the offer. As I read the document, Argentina is offering to exchange the old debt for its new, restructured debt on pretty much the same terms that plaintiffs such as NML Capital have already rejected.¹ Why would NML surrender now, when it seems to be doing well in the US courts? And isn’t there a risk that the Second Circuit will get its dander up on account Argentina’s new show of intransigence in the face of Judge Griesa’s injunction?

1. I took a look at some news coverage to make sure I wasn’t misunderstanding the document. Pan Kwan Yuk at the Financial Times and Bob Van Voris at Bloomberg seem to read the offer the same way I do.