If Chavismo's "hunger" bonds for PdVSA oil aren't paying enough, go electric!
For Venezuelas True Believers, the Ultimate Risky Bet Beckons
By Ben Bartenstein
September 8, 2017, 4:00 AM CDT September 8, 2017, 10:31 AM CDT
"For years, investors in Venezuela and its state oil company, Petroleos de Venezuela SA, took comfort knowing that in the event of a default, thered be assets they could potentially seize to recoup some of their losses.
But for bond buyers with an even bigger appetite for risk, those willing to throw themselves at the mercy of President Nicolas Maduros survival and track record of making good on debt payments, theres another option: Electricidad de Caracas, the state-run electric utility.
The companys $650 million of bonds coming due in April trade at just 67 cents on the dollar with a whopping 96 percent yield, making them the riskiest notes maturing over the next year in the worlds riskiest nation. And with good reason. In the event of default, PDVSA bondholders, and possibly even owners of Venezuelas sovereign debt, could lay claim to the crude producers oil, tankers and U.S. refining unit. But Elecar, which PDVSA bought a decade ago, has nothing for overseas investors to seize..."
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https://www.bloomberg.com/news/articles/2017-09-08/for-venezuela-s-true-believers-the-ultimate-risky-bet-beckons?utm_source=yahoo&utm_medium=bd&utm_campaign=headline&cmpId=yhoo.headline&yptr=yahoo
Not to worry... Maduro doesn't have a history of selling off
every asset...
just the ones that aren't nailed down. Lumber, oil, mining, shipping... its not like investors are going to come charging into Venezuela and steal copper cable. (His "colectivos" already do that!)