On July 20th, the Second Circuit addressed yet another aspect of Argentina's sovereign defaults. Besides its own government-backed sovereign debt, Argentina issued Brady bonds, Argentine debt backed by U.S. and German-government securities as collateral. In an earlier opinion, the Court found that Argentina's reversionary interest in the Brady bonds' collateral was attachable by holders of defaulted non-Brady bonds. In this appeal, the Second Circuit holds that in light of that attachment, Argentina cannot rewrite its collateral agreement with U.S. and Germany to relinquish its reversionary rights so that the collateral would pass directly to Brady bondholders, without passing through Argentina's accounts and becoming subject to the non-Brady bondholders' attachment. Capital Ventures International v. Republic of Argentina.