Venezuelan Debt Now Has the Vultures Circling

For years, investing in Venezuelan bonds has been a popular play for the world’s largest investors — seduced by mouthwatering interest rates, despite the obvious risks. Now, as the bonds have plunged in value over fears that the Venezuelan government will finally default on its bond payments, many traditional investors are heading for the exits, replaced by a hardier band of funds that specialize in the debts of near-bankrupt nations. With steel stomachs and having survived numerous byzantine debt dramas — from Argentina in 2000 to Greece in 2012 — they see Venezuela as the next great debt-restructuring payday. More…