The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments

URL:  https://boards.fool.com/republic-of-venezuela-bonds-29145631.aspx

Subject:  Republic Of Venezuela Bonds Date:  3/3/2011  1:54 PM
Author:  ytm Number:  32395 of 36864

I am by no means subscribing to hindsight investing. However recently I have been doing allot of due diligence on various random bond CEF's and MF's. One surprising tidbit that jumped out at me is the large amounts of sovereign debt out there some folks have accumulated.

Wondering if anyone on the boards is holding these Rep Venezuela Bonds?? Short term notes are still sporting low double digits yields in the 10%-14% range.

The last time they made major waves was in 2007 when a random comment about departing the IMF caused a little wrinkle due to technical verbiage in the bond prospectus or something like this.

I also ran across a Fitch release/rating off a business wire dated back in August 2010. On one hand it started out by saying B+ with a Stable Rating Outlook.

But then it goes on to describe a mixed bag of sorts with respect to inflation, economic recession, macroeconomic distortions, etc. Essentially Fitch's contention is that all of these logistics have undermined the country's status as an oil exporter.

BUT the big positive take away is the fact that the Rep of Venezuela does not have allot of debt nor is overburdened with it when compared to other governments and they have also demonstrated the ability and willingness to service their debt even in bad times.

So what say you?
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us