Venezuelan ‘Hunger Bonds’ Sink Into Default, Adding to Goldman's Headache
- The 30-day grace period on interest has come and gone
- Price has sunk to near record low of 22 cents on the dollar
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Back in May, Goldman Sachs Group Inc. stirred up a public-relations nightmare when its asset-management arm bought almost $3 billion worth of distressed Venezuelan bonds for pennies on the dollar. They were labeled “hunger bonds,” a nod at the country’s deepening humanitarian crisis, and critics pilloried Goldman Sachs online.
Now, to make matters worse for the bank, those bonds are in default.