Economics
White House Sanctions May Scare Off Venezuela Vulture Investors
- State oil company PDVSA’s five-year default odds climb to 99%
- Mnuchin says U.S. investors can’t restructure existing debt
U.S. Issues New Sanctions Against Venezuela's Maduro
This article is for subscribers only.
The Trump administration’s ban on new Venezuelan debt could scare off so-called vulture investors by making it nearly impossible for the country to restructure its obligations.
That means in the event of default -- which investors view as pretty much a certainty within the next five years -- the country and its creditors may struggle to come up with an agreement that would assign any value to its outstanding bonds. It also will make smaller debt swaps much more difficult to get done, possibly hastening the day of reckoning.