Venezuela Bond Traders Only Care About Oil as Correlation Jumps
- Slump in dollar notes surpasses slide in emerging-market debt
- Maduro's China loan announcement overshadowed by crude tumble
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The price of oil is increasingly all that matters to Venezuela’s bond investors.
President Nicolas Maduro said Sept. 1 the cash-strapped country would get a fresh $5 billion loan from China. Yet Venezuela’s dollar notes have slumped an average 1.7 percent, almost eight times the average loss in emerging markets. Crude’s 7.2 percent plunge has completely overshadowed the announcement.