HALISTER1: Venezuela Recovery Value Hammered by Low Oil Prices: Scotiabank

Venezuela Recovery Value Hammered by Low Oil Prices: Scotiabank

(Bloomberg) -- Sustainable debt restructuring with $30 oil would mean postponing all debt payments until 2019, Joe Kogan, head of emerging-markets strategy at Bank of Nova Scotia in New York, writes in e-mailed note.
  • Any interest payments at that point would be small or contingent on oil
  • Country needs WTI price of $46 to pay debt at current levels of imports
  • Higher EM yields mean market demand for restructured Venezuela bonds lower than wd have been a few yrs ago
  • Bond prices in line with where they shd be
  • NOTE: Related story: Maduro Tinkers With Policy as Venezuelan Debt Default Looms
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
BNS CN (Bank of Nova Scotia/The)

People
Joe Kogan (Bank of Nova Scotia/The)

To de-activate this alert, click here

UUID: 7947283