The writing is on the wall for Venezuela as falling oil prices exacerbate severe strains in the balance of payments. Both the government’s ability and willingness to service its foreign currency debt will be tested over the coming months, and we continue to think that a default is more likely than not in the next two years. As a result, foreign currency bond yields look set to remain very high.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.