That’s the question to ask as $2 billion
of bonds from the state-owned oil company that come due next month trade at
about 95 cents on the dollar. Traders with nerves of steel might be able to
bank a quick profit if all goes well and Petroleos de Venezuela SA honors the
debt. But there’s always the chance that won’t happen. Venezuela investors have
been on default watch for years now, racking up some of the world’s highest
yields for dollar-denominated debt amidst the omnipresent threat that it will
all go belly up at some point. The country sits on the world’s biggest oil
reserves, but suffers from a chronic shortage of dollars that has decimated
central-bank reserves and left the government unable to import enough medicine
and basic goods to meet citizens’ needs. More…
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