Wednesday, January 11, 2017

Venezuela Debt Default? Nomura Counts The Cash


Venezuela has some hefty debt obligations in February, April and May, but it’s likely that its cash, gold and loans will help it make payments. The big assumption here from Nomura Securities’ Siobhan Morden, head of Latin America fixed income strategy: that oil prices average $46 per barrel. That might seem conservative, but Venezuela gets a lower price for its heavy oil versus the international benchmark. Morden offered the table showing why, for all the political instability in the country and the shortages of basic goods, Venezuela is likely to “muddle through.” More…

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