The perception of defaulted sovereign debt investing has swayed between a masterful strategy and a divisive one that preys on poorer nations. To help us make sense of this, we are joined by one of the godfathers of sovereign debt investing, Jay Newman. Jay has had a remarkable career in international finance, he’s a trailblazer in sovereign debt investing, and now, with his first novel, Undermoney, he has also cemented himself as a captivating author. After learning about Jay’s roots and history in finance, he gives us his definition of sovereign debt investing and how he and his company helped to develop the strategy. Then, we dive into the 15-year saga that concluded with one of the biggest hedge fund trades in history: Argentine bonds. Jay gives us his first-hand experience of the drama including how Argentina acted throughout, how he dealt with pitfalls and challenges, Argentina’s fatal mistake, his asset seizure strategy, and the lessons that can be learned from the seizure of The Libertad. We also discover how the Yegiazaryan v. Smagin ruling of 2023 affects sovereign debt investing, what Jay has to say about the negative perceptions of sovereign debt investing, and the ins and outs of his enthralling debut novel, Undermoney. 

Key Points From This Episode:

• Getting to know the international finance expert-turned-novelist, Jay Newman. 
• What drew him away from law and into finance, and a look at his professional history.
• The idea behind sovereign debt investing. 
• How Jay and his company helped to develop the sovereign debt strategy, and the role of the bond market.
• The 15-year saga that concluded with one of the biggest hedge fund trades in history.
• A critical assessment of how Argentina operated during the saga, and how Jay dealt with it. 
• Argentina’s fatal misstep. 
• When Jay knew that it was time to pursue Argentina’s assets, and the strategies he used. 
• The story behind the seizure of the Argentine naval ship, The Libertad. 
• Understanding what broke the stalemate between Argentina and its creditors. 
• Jay’s advice for how to handle winning judgments that may not be immediately lucrative. 
• How the Yegiazaryan v. Smagin ruling of 2023 impacts sovereign debt investing.
• Our guest’s retort against sovereign debt investing being a predatory, suppressive strategy.  
• What inspired him to write Undermoney; the scary truth behind the fiction. 

Links Mentioned in Today’s Episode:

Jay Newman 

Jay Newman on LinkedIn

Jay Newman on X

Undermoney 

Elliott Management 

Default: The Landmark Court Battle over Argentina's $100 Billion Debt Restructuring 

Beaufort 

‘22-381 Yegiazaryan v. Smagin (06/22/2023)’ 

‘Peter Clement Returns: The Death of Wagner Leader Yevgeny Prigozhin’

Fordham University School of Law Corporate Law Center