Venezuelan Bonds Tumble Over 10% as 2 Earthquakes Darken Debt Restructuring Outlook
Updated
Updated · Bloomberg · Jun 30
Venezuelan Bonds Tumble Over 10% as 2 Earthquakes Darken Debt Restructuring Outlook
2 articles · Updated · Bloomberg · Jun 30
Summary
More than 10% has been wiped from most defaulted Venezuelan sovereign bonds and PDVSA notes since the debt restructuring process began in mid-May.
Last week’s two devastating earthquakes accelerated the selloff as investors marked down Venezuela’s financial outlook and the chances of a smoother restructuring.
The losses hit both the country’s sovereign defaulted debt and bonds issued by state-owned Petroleos de Venezuela SA, showing the pressure has spread across the main distressed debt complex.
The drop signals that an earlier rally in Venezuelan bonds has faded as disaster damage adds another obstacle to an already sweeping and difficult restructuring effort.