Is Venezuela Fooling Bond Traders? Experts Raise the Alarm
- Maduro may be driving down price of bonds to buy them back
- ‘Our own suspicions tend more towards a more brutal endgame’
RVX's Zucaro on Venezuela's Debt Overhaul Plan
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As Venezuelan bond prices sink toward a mere 20 cents on the dollar, a pair of sovereign debt specialists are publicly asking questions that many people are wondering in private: Is President Nicolas Maduro fooling the bond market? Was last week’s debt restructuring announcement simply a ruse to spark a panic, push down prices and then buy them back on the cheap?
“Maduro drove the secondary market prices of the bonds off a cliff,” Cleary Gottlieb Steen & Hamilton’s Lee Buchheit and Duke University’s Mitu Gulati wrote Wednesday in an opinion piece in the Financial Times.