The Contrarian Venezuela Bond Trade That's Delivering 37% Return
- PDVSA's soon-to-mature bonds deliver the biggest gains
- Barclays, Jefferies says longer-dated debt still best bet
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Want to make money in Venezuela’s bond market? Ignore the conventional wisdom.
Stone Harbor Investment Partners LP has done just that. The New York-based money manager has been buying up the country’s soon-to-mature notes as a bet the struggling oil-producing nation will scrounge up enough cash to continue making payments in the short-term. The move has paid off, with bonds maturing next month from Venezuela’s state-owned oil company returning 37 percent since the end of 2014. On average emerging-market bonds lost 0.5 percent this year.