Venezuela Bonds Now Yield a Record 40 Points Over U.S. Treasuries
RVX's Zucaro on Venezuela's Debt Overhaul Plan
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Venezuelan debt is teetering toward default with average prices near 30 cents on the dollar.
As investors ponder an invite from the government to come to Caracas next week to discuss a restructuring (or renegotiation or refinancing, depending on which official is speaking), they now demand a record 40.8 percentage points of extra yield over U.S. Treasury bills to hold the country’s bonds. No one really expects those yields to pay out as Venezuela seeks debt relief, but they do give an idea as to just how distressed the securities have become.