Venezuela

Consensus is growing among investors and analysts that default is inevitable for Venezuela, as oil hits lows not seen in more than a decade.

Opposition supporters were rejoicing in Venezuela this week after their greatest electoral victory over Chavismo, but the bond market’s reaction was muted as oil plummeted to nearly seven year lows and the scale of the political and economic challenges that lie ahead loomed large.

For Venezuelan bonds to jump as much as four points on a day that oil prices reached seven year lows on Monday was surely a sign that something special had happened. But some analysts felt that such will be the impact of Sunday’s parliamentary election in Venezuela that the bonds should have rallied even further.

Latin America development bank Corporación Andina de Fomento (CAF) has picked leads for a euro transaction and will hold investor calls this week.

Bond prices in the secondary market, alongside recent analyst reports, suggest a belief that Venezuela will meet its immediate debt obligations. But the prospects for next year appear murkier.

Latin American supranational Corporación Andina de Fomento (CAF) priced a Sfr200m ($203m) eight year bond on Tuesday with its lowest coupon on an international bond deal.

Latin American supranational Corporación Andina de Fomento (CAF) priced a Sfr200m ($203m) eight year bond on Monday with its lowest coupon ever on an international bond deal.

Caribbean island nation Jamaica filed a bond shelf with the SEC for issuance of up to $3bn on Tuesday, taking it one step closer to a much anticipated deal that would be at least partly used to finance PetroCaribe loans owed to Venezuela.