Venezuela outperforms in volatile session

Venezuela outperformed in a weaker sovereign market Tuesday despite a volatile session that saw the South American country's bond prices whipsaw in response to new FX measures. An aggressive bid for Venezuelan paper early morning quickly vanished after the government revealed only small changes to the current three-tier foreign exchange regime. "The launch of this third FX market (SIMADI) has the potential to give the system some flexibility...," Barclays analysts wrote in a note to clients. "But the initial proportion of the FX supply that the government seems willing to move to this market strikes us as too small to have a meaningful impact,"More….