Venezuela Spooks Swaps Traders as Indicted General Gets Top Post
- Country’s default swaps had tumbled in recent months
- U.S. court revealed drug trafficking charges for Reverol
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Derivatives traders are ratcheting up wagers that Venezuela will default after President Nicolas Maduro replaced a key member of his economic team and tapped a military general accused of drug trafficking by the U.S. to join his cabinet.
The cost of protecting Venezuela’s bonds from non-payment for one year has jumped 5.83 percentage points in the past week as of 10:22 a.m. in New York, the biggest five-day increase since April.