The balance of power between creditors and countries depends on a court case battle between Argentina and hedge fund Elliot Associates. However, fears that the case could trigger an Argentine default have eased recently, indicating that Buenos Aires could still win the case court battle. John Peta, co-head of emerging market debt at Threadneedle Investments, discusses with capital markets correspondent Robin Wigglesworth whether markets are being overly optimistic.
Produced by Nalini Sivathasan. Filmed by Rod Fitzgerald.