Biggest Chance of Default Seen in Venezuela as Bonds Hit ’98 Low
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Traders are almost certain that Venezuela will teeter into default as bonds plunge to a 16-year low and the cost of default protection soars to a record.
Benchmark dollar notes due 2027 fell 2.71 cents on the dollar to 43.95 cents, the lowest since September 1998, according to data compiled by Bloomberg. The upfront cost of five-year credit-default swaps jumped 2.8 percentage points at 3 p.m. in New York to 59.42 percent, pushing the implied probability of default over that time span to 93 percent, the highest in the world.