Investors Preparing for Venezuela's 'End Game' Look to the Cheapest Bonds

With political and social tension in Venezuela on the rise, investors should prepare for the “end game” by seeking out the country’s lowest-priced debt, according to Deutsche Bank AG. The cheapest bonds -- which generally carry longer maturities -- will provide the best return in a scenario under which Venezuela defaults and is forced to restructure, Hongtao Jiang, a strategist at the bank, wrote in a report. Jiang said while he doesn’t expect Venezuela to stop payments this year, it’s a possibility that bond buyers need to be prepared for. More…