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A Mystery Bond in Venezuela Has Traders Scratching Their Heads

  • Investors last week saw prices on 2022 bonds issued by PDVSA
  • State oil company's notes have fallen 6.2% since March 22
Workers at a Petroleos de Venezuela gas station in Caracas.

Workers at a Petroleos de Venezuela gas station in Caracas.

Photographer: Wilfredo Riera/Bloomberg
Updated on

Bond investors in Venezuela have made a dispiriting discovery.

Last week, traders started quoting prices on a $3 billion note issued by the nation’s state-owned oil company. While the eight-year securities were first sold in October 2014 under New York law, according to data compiled by Bloomberg, not much else is known. The bonds don’t trade on any U.S. exchange, aren’t rated by any major credit-ratings firm and no term sheet has been made public.