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GatoGordo

(2,412 posts)
Fri Sep 8, 2017, 02:50 PM Sep 2017

If Chavismo's "hunger" bonds for PdVSA oil aren't paying enough, go electric!

For Venezuela’s 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, there’d 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 Maduro’s survival and track record of making good on debt payments, there’s another option: Electricidad de Caracas, the state-run electric utility.

The company’s $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 world’s riskiest nation. And with good reason. In the event of default, PDVSA bondholders, and possibly even owners of Venezuela’s sovereign debt, could lay claim to the crude producer’s oil, tankers and U.S. refining unit. But Elecar, which PDVSA bought a decade ago, has nothing for overseas investors to seize..."


-snip-

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!)
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