Bondholders Embracing Chavez’s Disciple in Ecuador: Andes Credit

Nicolas Maduro and Rafael Correa are both socialist disciples of the late Venezuela President Hugo Chavez, but only one is managing to convince bondholders he’s got the ability to weather the collapse in oil prices.

While Chavez’s handpicked successor Maduro is struggling to ward off a default, Ecuador counterpart Correa is getting a vote of confidence as he cuts spending and lines up more than $7.5 billion in loans from China. Ecuador’s benchmark notes due 2024 have gained 2.3 percent in the past month, compared with a 16 percent plunge in similar-maturity Venezuelan securities.