Tuesday, September 12, 2017

Venezuela Bond Bull Says Sanctions May Keep Maduro Paying


One of the largest holders of Venezuelan bonds says U.S. sanctions are giving Nicolas Maduro’s government greater incentive to pay its debts. The penalties imposed late last month restrict the country’s ability to restructure its obligations, meaning the president’s only option is to keep scraping up enough cash to keep current on overseas notes. Maduro will put off default as long as possible because it would be catastrophic for the oil industry and ultimately lead to a government collapse, according to Bent Lystbaek, who oversees $3.4 billion in emerging-market debt at Danske Capital. More…

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