This Bond Investor Says Now Is a Good Time to Buy Venezuela Debt
- Market assumes the worst as president seeks restructuring
- Venezuelan sovereign debt slump suggests losses of 70%
Venezuela Leaves Markets Confused on Restructuring News
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The Ashmore Group Plc head of research who bet in August that Venezuela wouldn’t default any time soon is sticking to his guns after President Nicolas Maduro said he’s seeking debt relief for his embattled country.
Jan Dehn, who also helps manage emerging-market holdings at the $59 billion fund, said the market is pricing in the worst-case scenario, for a default “with a very low recovery value.” Some of the nation’s shortest-dated dollar bonds traded at levels that imply a principal loss of 70 percent on Friday.