Halister News

(Bloomberg) -- Citi recommends buying Venezuela bonds with CDS as it does not expect U.S. sanctions to be “punitive,” Donato Guarino, Munir Jalil, and Esteban Tamayo write in report.

• “This negative price action has been driven by fear of further U.S. sanctions - possibility limiting the Venezuela oil imports - if Maduro will go ahead with the July 30 constituent assembly vote to re-write the constitution. We do not think U.S. sanctions will be punitive.”
• Recommends investors enter a “notional neutral basis trade”: Long Venezuela 2023 bonds and buying protection with 5yr CDS contract
• NOTE: Venezuelan Soldiers in Streets as Maduro Plans Power Grab

To contact the reporter on this story: Christine Jenkins in Bogota at cjenkins28@bloomberg.net To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net Nathan Crooks