Navigating Venezuela's Default

2 minute read

At approximately 5:30 pm November 1, 2017, the president of Venezuela, Nicolas Maduro, issued a vague speech to his nation declaring the intention to appoint a special commission, headed by Vice President Tareck El Aissami, to refinance, re-profile, or restructure the nation’s debt. Since then, Venezuela has missed payments and, despite a bilateral agreement with Russia to re-profile some debt, is facing default. To prepare for such an event, we’ve maintained a defensive strategy that preferred low dollar-price and collateralized paper.