AL30 vs GD30: what the law is worth

New York law twin

AL30 → GD30

Law premium today

236 bp

1. 2002 · Decree 471/2002 converted into pesos, at 1.40 per dollar plus CER inflation, the public sector dollar debts governed solely by Argentine law; the Supreme Court upheld it in the Galli case (2005). Foreign law debt was outside that decree. Source
2. 2001-2016 · December 2001 default, 2005 and 2010 exchanges and the holdout litigation in New York: in 2014 the US Supreme Court declined to review the pari passu ruling, allowed discovery of Argentine assets and payments were blocked; in 2016 Law 27,249 repealed the lock law and the holdouts who accepted the settlement were paid. New York law let creditors sue and collect abroad, years later. Source
3. 2019 · Decree 596/2019 deferred by decree the payments on Letes, Lecap, Lecer and Lelink, short-term Argentine law debt, except for holdings of individuals registered on July 31, 2019 and kept until the payment date; foreign law bonds were not touched. Source
4. 2020 · Law 27,544 (February 2020) enabled the foreign law exchange; in April, Decree 346/2020 deferred by decree the payments on dollar bonds under Argentine law, and in August Law 27,556 enabled the local law exchange, with the same improved offer for both: 93.55% participation abroad (99.01% amended through the collective action clauses) and 99.41% in the local exchange. Same final treatment, different path. Source
5. 2020 · A New York law bond is a contract with a trustee and with New York courts for litigation (2016 Indenture). A Bonar is a security issued under Argentine statute and decree, which Congress or the Executive can amend. Source
6. 2020 · The 2020 Globales can be amended with more than 75% of a series, or across series with more than 66⅔% in aggregate and more than 50% of each, or with more than 75% in aggregate if the offer is uniform; they limit series redesignation and include a clause against the Pac-Man tactic. The 2020 exchange Bonares carry no collective action clauses: Annex IV of Decree 676/2020 does not provide for them. Nor do the joint resolutions of the new Bonares: 62/2025 (AN29), 11/2026 (AO27), 16/2026 (AO28) and 44/2026 (AO29). Source
7. 2023 · Decree 164/2023 required public agencies to sell their Bonares and to hand their Globales to the Treasury in exchange for a 2036 dual bond: different treatment depending on the governing law. Source
8. Today · The financial press reads the yield gap between twins as the premium the market demands for Argentine law, tied to restructuring risk, political uncertainty and liquidity. In October 2026 published readings ranged from 146 to 270 bp depending on source and time of day; this step shows the reading of the day, from our own calculations on the same prices as the sovereign curve. Source

What changes in a default. Under New York law claims can be litigated in New York courts and the terms change only with bondholder majorities (collective action clauses). Under Argentine law, Congress or the Executive can change the terms by statute or decree, as in 2002, 2019 and 2020.