JPMorgan and Bank of America Favor Venezuelan Bonds With More Unpaid Interest, Bloomberg Reports
JPMorgan Chase & Co. and Bank of America analysts are urging their clients to buy Venezuelan global bonds with large amounts of unpaid interest. They bet they could perform better before a possible debt restructuring. The banks prefer short-term notes that have accumulated significant past-due interest [...]
TL;DR
- JPMorgan Chase & Co. and Bank of America analysts recommend buying Venezuelan global bonds with large amounts of unpaid interest.
- The banks believe these bonds may perform better before a potential debt restructuring.
- Preference is given to short-term notes with significant past-due interest (PDI), which trade at steeper discounts.
- This strategy is based on the potential for recovery if restructuring terms reward these arrears.