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Keyword: venezuelandefault

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  • How the Swaps Market is Preparing for a Venezuelan Default

    12/10/2014 9:58:43 AM PST · by george76 · 4 replies
    wsj ^ | Dec 4, 2014 | Christopher Whittall
    Venezuela is really feeling the pinch from sliding oil prices. Now its bonds are in such bad shape that some investors are treating the country’s default as a near certainty. And they are taking action. How? Well certain banks have started to offer swap contracts that allow investors to fix the amount they can recover on insurance bought against a restructuring of the country’s debt, according to investors. If CDS contracts are triggered, the cheapest Venezuelan bonds trading in the market at that time will be used to determine payouts to protection holders. Those not wanting to take any chances...