Venezuela Bonds Gain Ahead of JPMorgan Index Phase-in Process
- Phase-in period starts Tuesday and to last three months
- Notes are also gaining on improved sentiment around elections
Government bonds maturing in 2027 trade around 21.5 cents on the dollar and those from the state oil company due in 2026 are close to 12.5 cents.
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Venezuelan bonds have risen to the highest levels in three months as JPMorgan Chase & Co. begins to increase the weight of the securities in widely followed emerging-market debt indexes.
Funds have been adding Venezuela debt ahead of the re-weighting, which starts Tuesday, with notes from the government and state-owned companies rising an average of about 20% this year, according to data compiled by Bloomberg. JPMorgan will increase from zero the weight of the notes in the Emerging Market Bond Index series over a period of three months.