Venezuela Oil Bonds Plunge With 24 Hours to Go Until Payment Is Due
- ‘Fear is higher now because the deadline is approaching’
- State-run oil company owes more than $2 billion over next week
Venezuela Faces Bond Market Day of Reckoning
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Venezuela’s state oil company has a hefty payment due Friday and the lack of any signs or comments about the funds being transferred has the market in a late stage of panic.
PDVSA’s dollar bonds tumbled more than four cents with yields on notes due 2020 jumping more than 2 percentage points to 17.3 percent. The probability of PDVSA defaulting on its debt over the next year has jumped to 79 percent with the odds over the next five years at 99 percent, according to credit default swap trading.