Venezuela

New US sanctions announcements on Russia, chatter around new IMF financing for Angola and a desperate economic recovery plan in Venezuela are keeping those emerging market portfolio managers still at their desks busy. But low volumes are playing havoc with EM secondary levels as traders embrace the quietest trading week of the summer.

Venezuela has adopted a radical approach in its attempt to rein in its out-of-control economy, effectively devaluing its currency by almost 96% and pegging the value to Venezuela’s oil-backed pseudo-cryptocurrency — widely considered a scam.

Venezuelan state oil company PDVSA saw its 8.5% 2020s drift back upwards this week after taking a hit on the back of a US court ruling that caused some concern about bondholders’ ability to claim their collateral.

The US Treasury Department’s Office of Foreign Asset Control (OFAC) has issued a licence that would enable holders of PDVSA’s 8.5% 2020s to access the bond’s collateral despite an executive order that prohibits US persons from receiving shares from the Venezuelan government.

A group of investors owning bonds of Venezuela and state-owned oil company PDVSA want creditors of the two issuers to be treated equally.

A group of investors owning Venezuela sovereign bonds and notes issued by state-owned oil company PDVSA want creditors of the two issuers to be treated equally, as analysts point out that the sovereign debt is outperforming that of the oil company.

South American development bank CAF took the unusual step of issuing in euros just four months since its last outing in the currency, after eying an opportunity in a favourable basis swap.

South American development bank CAF (Corporación Andina de Fomento) returned to the euro markets for the second time this year with a smaller deal than some were expecting amid volatile European markets.

South American development bank CAF (Corporación Andina de Fomento) has released initial price thoughts for its second visit to the euro bond market this year.

Nicolás Maduro’s comfortable and predicted victory in Sunday’s highly questioned presidential elections in Venezuela has reaffirmed the view of many bondholders that improvements in the crisis-stricken country are some way off.

Nicolás Maduro’s comfortable and predicted victory in Sunday’s highly-questioned presidential elections in Venezuela have strengthened the president’s grip on power and reaffirmed the view of many bondholders that improvements in the crisis-stricken country are some way off.

One of the Venezuela analysts most keenly followed by the country’s bondholders will lead opposition candidate Henri Falcón’s economic team in the run up to this year’s presidential elections, which the largest opposition party is boycotting.