Venezuelan Acting President: Initiates Debt Restructuring Negotiations, Venezuela Bonds' Surge Pauses

Due to the expectation that the restructuring process will take a long time, some investors are taking the opportunity to cash out and exit. Venezuela's debt restructuring still faces numerous obstacles, including uncertainties about the real size of Venezuela's economy and the total amount of outstanding government debt. Venezuelan bonds have already surged more than 60% this year, with a cumulative increase of nearly 220% over the past 12 months. Jeff Grills, Head of Debt at Aegon Asset Management, said, “At around 60 cents on the dollar, it’s hard to imagine there is much upside left in these bonds without more information about Venezuela’s fiscal situation.”