It seems to be a lose-lose situation for Argentine bondholders. In a report entitled "Argentina Debt Restructuring Scenario," issued by Fitch last week, sovereign analysts said Argentine bondholders are looking at deep net present value (NPV) losses as a result of a probable debt restructuring. And even if the restructuring does not occur, the severe walloping that the country's sovereign debt rating has taken this year is sure to deliver a harsh blow to Latin American investors.

Earlier this month, Fitch downgraded Argentina to triple-C-minus with a negative outlook, citing government delays in transferring tax revenues to the provinces, an economic recession, and rising interest rates as just some of the culprits.

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