Venezuela Bonds Worth Holding to Morgan Stanley as Reserves Fall

Venezuela is blowing through its reserves at a pace of about $1.6 billion a month, Morgan Stanley estimates. Even so, the country can probably hold out long enough that investors can still profit from holding the government’s bonds.

President Nicolas Maduro needs to start selling assets urgently, strategist Robert Tancsa wrote today in a note to clients. He thinks the country is unlikely to default this year after local buyers bought up large chunks of the Petroleos de Venezuela bonds coming due in the fourth quarter.