Venezuelan Bonds Jump as JPMorgan Returns Debt to Indexes
- About $53 billion worth of debt impacted by JPMorgan decision
- Both sovereign and PDVSA notes will return to firm’s EM gauges
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Bonds from Venezuela and its state-owned oil company are rallying after JPMorgan Chase & Co. laid out a plan to re-weight the securities in widely followed emerging-market debt indexes.
About $53 billion of Venezuela’s sovereign bonds and Petroleos de Venezuela SA’s notes — which have lingered in default since 2017 — will re-enter the Emerging Market Bond Index series over three months starting April 30, a team led by Gloria Kim wrote in a Thursday statement. The decision comes just four months after the US government lifted a ban on trading the instruments on the secondary market.