Defaulted Venezuelan Bonds Soar After US Lifts Trading Ban (1)

Venezuelan bonds rose sharply after the Biden administration allowed US investors to buy the notes for the first time in four years as part of a sweeping sanctions relief package.

Government bonds jumped about 10 cents on Thursday to trade at 20 cents on the dollar, while notes of the state oil company, PDVSA, due in 2026 doubled to around 15 cents, according to traders.

The rally demonstrates how demand has risen for the ulta-cheap, defaulted debt amid speculation that US-Venezuelan political relations would eventually normalize, allowing the nation to restructure and settle with creditors. It has been in default ...