Venezuela’s debt remains at attractive levels, with current valuations still holding upside potential amid the possibility of US military operations near the Venezuelan coast intensifying before year-end, Citigroup strategists led by
- The firm remains overweight Venezuela, recommending high coupon bonds like the notes due in 2022
- “We think the risk-reward still advocates for a long position” with a profit & loss upside of around 45%-50%
- Citi’s strategists believe the country’s credit has been rallying on expectations of regime change
- Venezuela’s external debt, including obligations of state-owned oil company PDVSA, stands at $169 ...