Citi Sees More Upside in Venezuelan Debt on Recast Announcement

Citigroup strategists still see upside in Venezuelan bonds, saying an earlier-than-expected debt restructuring timeline will lift recovery values.

• A reduced litigation drag, clearer creditor coordination and earlier anchoring of a restructuring framework, would improve recoveries, strategists including Alexander Rozhetskin, Luis Costa and Donato Guarino wrote in a Thursday note
• NOTE: Venezuela Kickstarts $170 Billion Debt Restructuring Process
• “We remain OW Venezuela and see 10-15% upside on bond prices based on our assumptions,” they wrote
• Broader US Treasury licenses have eased constraints on the oil sector and investment planning, ultimately improving the capacity for recoveries through higher production and cashflow ...