Defaulted Venezuelan bonds have rallied from 30 cents to 40 in anticipation of some kind of debt restructuring since the US captured President Nicolás Maduro on 3 January and left his vice president in charge.
So far, Donald Trump and his administration have talked a lot about the country’s oil, but haven’t outlined plans for Venezuela’s defaulted debts, totalling at least $150bn or over 200% of gross domestic product. The country stopped making payments in late 2017 as it entered hyperinflation.
Here are 11 considerations for the potential debt restructuring.
1. Bondholders shouldn’t be this excited
Taken at his word, Trump wants to triple or quadruple Venezuelan oil production, which will require something like $100bn…