Venezuela’s PDVSA, Brazil flat to higher as political questions persist

By Rebecca Melvin

New York, May 31 – Venezuela remained a focus of investors of Latin America debt on Wednesday, with pricing flat to higher despite lower crude oil prices.

Brazil’s sovereign debt also edged higher as optimism over reforms continues to buoy that market despite some market experts who say reforms will be delayed or possibly not even take place.

PDVSA (Petroleos de Venezuela SA)’s 8˝% notes due 2017 were up around 91˝, which is up from about 90Ľ previously, according to one market source. A second source put the bond at 91.1 yielding 32.75%.

PDVSA’s bonds, which are quasi-sovereign bonds, and Venezuela’s sovereign bonds jumped on Tuesday after news that Goldman Sachs Group Inc.’s asset management group purchased $2.8 billion of PDVSA bonds last week, paying about $865 million for the paper.

Local politicians pushed back on the bank as officials opposed to President Nicolas Maduro’s administration have recently asked international financial institutions to avoid any transactions that might help a government accused of human-rights abuses.

Brazil’s sovereign bonds were also seen edging higher on Wednesday, with the Brazil 6% notes due 2026 indicated at 108.45 bid, 108.8 offered, up from 108.25 bid, 108.6 offered on Tuesday, according to a market source.

Most of Brazil’s sovereign paper was indicated up between 0.2 point to 0.3 point, but some remained unchanged day over day.

© 2015 Prospect News.
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