Wall Street’s Venezuela Bond Bulls Can’t Convince Loomis
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Some of Wall Street’s biggest banks say that Venezuela’s new currency system is a signal to buy the nation’s bonds. Insight Investment Management and Loomis Sayles & Co. aren’t convinced.
Barclays Plc and Bank of America Corp. recommended the debt after the government said Feb. 11 that it will create a new exchange rate for dollars as it seeks to ease shortages of everything from food and medicine that have led to the deadliest protests in more than a decade. Since then, the notes have returned 11.5 percent, the biggest return in the Bloomberg USD Emerging Market Sovereign Bond Index.