Latin America
Related: About this forumBofA Says Chavez Defeat Bets Are Overdone in Bond Market
Bank of America Corp. recommended selling Venezuelan bonds, saying that their rally shows investors are overestimating the chances that President Hugo Chavez will lose this months election.
Bank of America cut Venezuelan bonds to underweight two weeks after JPMorgan Chase & Co. lowered the countrys debt to marketweight from overweight. Bank of America told clients to sell dollar bonds due in 2028 and 2034, saying theyve become expensive. Yields on the bonds due 2028 have plunged 2.25 percentage points since the end of June to 10.62 percent and touched a four-year low of 10.54 percent yesterday.
Chavez is likely to defeat opposition candidate Henrique Capriles Radonski in the Oct. 7 vote and could win by a wide enough margin to give him room to pursue more radical policies, Bank of America analysts led by Jane Brauer wrote in a report. Chavezs nationalizations of utilities, banks and other companies as well as his implementation of currency and price controls have helped make Venezuelan bonds the highest- yielding securities among major Latin American countries.
We see many investors holding overweight or market weight positions going into the election, believing that the upside is very large if Capriles wins and that the downside is manageable if Chavez wins, the analysts wrote. A selloff could occur if President Chavez wins re-election by a wide margin.
Bank of America backs Chavez. Rich isn't it? Chavez the anti-imperialist.
tama
(9,137 posts)joshcryer
(62,276 posts)He's not divisive, he doesn't throw slurs around, he doesn't demean Chavistas.
Why would you support the candidate that Bank of America is rooting for?
tama
(9,137 posts)Capriles is member of center-right party and was involved in the coup attempt against Chavez.
http://en.wikipedia.org/wiki/Henrique_Capriles_Radonski
Bush saying that he was a "compassionate" conservative didn't make him so. Capriles can say anything he wants.
BoA is not rooting for Chavez but calculating probabilities and how they affect bond market.
Why are you supporting center-right party candidate and "fervent catholic" who had his police arrest Interior Minister Ramon Rodriguez Chacin during the coup attempt?
joshcryer
(62,276 posts)You can read his platform here: http://hayuncamino.com/
It is in no way right wing.
BofA is rooting for Chavez because they lose money if Capriles wins. They will have to pay the high yield on the bond. If Chavez wins the bond gets sold off and poof, they save millions.
I don't believe a word of what Rodriguez says given that Capriles was cleared of all charges.
tama
(9,137 posts)is how looney the neoliberal lies are getting.
joshcryer
(62,276 posts)Par for the course for chavistas.
Find one occurrence of Capriles denigrating the chavistas.
You won't and can't.
I can give you dozens where Chavez, daily, cuts down the opposition and calls them everything from imperialist lackeys to ... pigs.
Just the regular two minutes hate against the opposition.
I look forward to the meltdown.