As many Venezuela bondholders stampede, some joust for advantage

Ferro said that for the past few weeks, he has been buying both bonds issued by Venezuela’s government as well as those sold by its state-owned oil company PDVSA, with a preference for the country’s 2027 bond. Both the 2027 bond and all of those issued by PDVSA share a common characteristic: They lack a clause that can force all bondholders to accept a restructuring pact as long as 75 percent sign off on the deal. The absence of such collective action clauses, or CACS, can allow a small group of investors to hold out for better terms, as famously happened after Argentina defaulted in 2001.More…