Barclays Recommends Selling Venezuela Bonds Amid Election Chaos

Barclays Plc. is recommending to sell Venezuelan government and state-owned oil firm PDVSA bonds as the chaotic aftermath of presidential elections makes a restructuring under Nicolas Maduro ever less likely.

• Although bond prices are at a three-month low, “we see room for even further downside under a status quo scenario,” strategist Jason Keene writes in a report to clients
  • Even putting the post-electoral environment to the side, Maduro has little incentive to restructure debt unless he’s able to raise additional funds, and few creditors would be willing to provide that to an international pariah with bad credit history
  • NOTE: From ...