The Godfather of Sovereign Debt Management

Published on
August 10th, 2018
Topic
Career, Monetary policy, Debt
Duration
66 minutes
Asset class
Bonds/Rates/Credit

The Godfather of Sovereign Debt Management

The Interview ·
Featuring Lee Buchheit

Published on: August 10th, 2018 • Duration: 66 minutes • Asset Class: Bonds/Rates/Credit • Topic: Career, Monetary policy, Debt

From confronting maverick creditors to discipling rogue nations, attorney Lee Buchheit has spent his career maneuvering the world of distressed sovereign debt. When it came to dealing with Greece and Mexico, his success was unmatched, and in this interview with Greylock Chairman and CEO Hans Humes, Lee unveils how he operated during the Brady Era and also discusses his approach for negotiating with governments, banks and world leaders. Filmed on July 31, 2018 in New York.

Comments

  • AG
    Alexander G.
    17 October 2018 @ 18:50
    Excellent! There is not much stuff from Lee available in general, so I am very happy you chose to interview him.
  • JJ
    J J.
    20 September 2018 @ 17:56
    This was amazingly educational. Thank you.
  • nd
    nicolas d.
    23 August 2018 @ 12:18
    Amazing Stuff. Well done
  • SB
    Stewart B.
    19 August 2018 @ 14:22
    Great interview. Genuinely new content.
  • HH
    HODL H.
    16 August 2018 @ 01:43
    This is amazing content RV, thank you. Tough to see them sit in those chairs though LOL
  • AO
    Arthur O.
    15 August 2018 @ 03:33
    That's a big knot
  • AE
    Alex E.
    14 August 2018 @ 23:45
    Thank you RVTV for giving us an insight into the complexities of debt restructuring. This just reinforces my view that debt and debt investing is not in my wheelhouse because of the complexities involved and the possibility that an investor may wait an awfully long time to get anything back from his/her investment!
  • RA
    Robert A.
    14 August 2018 @ 22:39
    I thoroughly enjoyed this one! Nothing like a low key heavy weight interviewer to set just the right tone. As I watched all I could think of was the old saw....”I’d rather have a Mortgage on a Garden than a Mortgage on the Kingdom”. Before RV I had never contemplated a “Debt Jubilee” or the potential for a Reserve currency Sovereign debt “restructuring”. Lions and tigers and bears, oh my. I know this video may not have been for everyone, but I commend Curator Milton for getting it before us—and not giving the subject matter short thrift.
  • WM
    Will M.
    12 August 2018 @ 18:53
    Great discussion. (By the way using the speed to 1.25 does not impair the discussion but does speed it up for those who like a better pace) What amazes me about the serial defaulter Argentina is that it has this summer been able to secure another $50 billion loan from the IMF, who just 10 - 15 years or so ago said there would "no more Argentinas". This should be clearly understood to be yet another waste of IMF funds to a country that has already gone to the dogs at least once and should on this occasion be left to be thoroughly savaged by a pack of rabid wolves for its stupidity. The IMF loan will surely be defaulted upon again, especially if the $ soars per Martin Armstrong and many experts on on RVT. So we can only draw the conclusion that the IMF loan is for the benefit of wealthy folks and government corruption. Obviously the IMF and Ms Lagarde are dancing to a elitist and political tune and to hell with the IMF funding parties and their associated voters. Absolute sham and a shame. As for Puerto Rico you could see it coming from a mile and 2 decades away. Puerto Rico's incompetent officials appear to have got away scot free and are now petitioning the US to bail them out, what a disgrace. As for Venezuela ........ its good example for why the population should have guns to protect themselves against tyranny, corruption and political incompetence.
  • HJ
    Harry J.
    12 August 2018 @ 18:04
    I would love to hear him address the current situation re: the us and our debts.
  • SS
    Sam S.
    12 August 2018 @ 15:11
    Learned so much insight into an area few of us get to roam. Excellent. Would love to hear Mr. Buchheit views on the future, those risky areas of debt and out of his experience, some direction for investor protection relating to bonds. All the best!
  • IM
    Istvan M.
    12 August 2018 @ 14:53
    Brilliant - and good timing as Turkey enters distress
  • BC
    Bryan C.
    12 August 2018 @ 07:57
    Good insights into how global economics work in the sovereign debt arena. Incredibly boring discussion of a very dry topic.
  • LC
    Louis C.
    12 August 2018 @ 05:08
    Realvision, this is top content. It made me watch again the interview of Hans Humes back in May18 here, which with further insight, is excellent content as well.
  • V!
    Volatimothy !.
    12 August 2018 @ 03:02
    This global financial house of cards was built with a deck of jokers. Haircut is not the appropriate term. You aren’t left with the same feeling in the two respective meanings.
  • WP
    William P.
    11 August 2018 @ 17:24
    Milton, any possibility of reaching out to John Perkins for an interview?
  • my
    markettaker y.
    11 August 2018 @ 05:06
    Anyone found the New Yorker article that Mr. Humes refers to throughout? I cannot find any mention of Buchheit in TNY.
    • RI
      R I.
      11 August 2018 @ 10:48
      It was probably the one in NY magazine, which includes this quote: “Using a legal precedent with roots in nineteenth-century Britain, his team muscled Greece’s creditors into accepting a 75 percent cut on their investment. “It was pretty savage,” he says, with pride.” Yes, savage and despicable that he made it his “life’s work” to skimp investors out of their hard earned capital by giving sovereigns a get out of jail free card via some esoteric legalese.
  • my
    markettaker y.
    11 August 2018 @ 04:57
    Milton please line up the subtitles with the audio!! It's wonderful to have subs but them not being lined up sucks. Thank you.
  • PB
    Pieter B.
    10 August 2018 @ 23:53
    Thanks a lot Lee & Hans! This was super informative.
    • PB
      Pieter B.
      11 August 2018 @ 00:39
      About Greece: so did you say there was finally a 50% haircut on the outstanding debt principal or not? In the newspapers in Northern Europe (being Dutch myself) I always read that Greek debt was NOT restructured in anyway (if I am correct) but that only the maturity was extended and that presently new money is “loaned” to Greece to pay for interest payments back to the bond holders.
  • DS
    David S.
    10 August 2018 @ 20:16
    Great interview. It is amazing to me that investors demand so little interest on sovereign debt including the US with a 10-year bond just below 3%. Even after-market purchases at 50 cents on the dollar may yield nothing. The political risks of deficit spending and printing money should divert funds to other investments, or there is simply too much money in hands of too few investors. Sovereign debt is in the same shape as the mortgage backed security fraud ratings. Since the rating agencies probably will not do anything until after the explosion, it is the investors that need to push bond rates up - not through collusion but by acting economically. Sovereign will not change if there are no consequences. A 30-bond in the US around 3%? Is a 100-year bond in Argentina a reasonable financial investment? Get a grip. DLS
  • KT
    Ken T.
    10 August 2018 @ 14:23
    Excellent. I really enjoyed and learned from this discussion.
  • BW
    B W.
    10 August 2018 @ 13:53
    Pardon me, would you have any grey poupon?
    • HJ
      Harry J.
      11 August 2018 @ 16:58
      Yes if you have some meat bread and chips!
  • MM
    Mike M.
    10 August 2018 @ 12:27
    Maybe on a follow up there can be some discussion of the nationalization of the US bond market by the Fed. Res. How do they expect this to resolve? Best regards,

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