PDVSA bonds initially valued at 19.25 cents at CDS auction

Bonds of Venezuela’s PDVSA were valued at 19.25 cents on the dollar in the first stage of an auction Wednesday to determine the payout on credit default swaps tied to the state-owned oil company. That would mean buyers of the swaps - which are essentially insurance against bond defaults - would get a payout on their contracts of 80.75 cents on the dollar. More…