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Venezuela Is Late on $1.7 Billion and Bond Traders Are Stuck

  • PDVSA, nation owe $705 million in coupon payments in February
  • Venezuelan bonds have rallied a world-leading 13% this year
Updated on

It’s been more than three months since the first of more than a dozen Venezuelan bonds was declared in default, and the arrears keep stacking up.

Wall Street investors reluctant to give up hope they’ll eventually be paid are in limbo after the nation and its state oil company busted through grace periods on about $1.7 billion of debt payments, rating firms declared many securities in default and swaps that provide insurance against non-payment were triggered.