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?
The Economist's view:http://www.economist.com/node/18233412
Thanks Clarke for the link. That answers that. I would say a tad more insightful than Fitch. Can you say end of thread......
And that article said nothing about Venezuela's friendly deals with countries such as Iran. This guy will surely end up causing a complete disaster for Venezuelean people.Gasoline the only thing cheap for locals is about $0.25 / gal because they will simply revolt(as always) if this increased.Other staples are now priced above US prices by a factor of 10.Those that worked for 20-30 years and are now out work and pensions cannot be paid because there are no funds available.I shudder to think that anyone would buy into Venezuela.Sorry had to get that out of my system. I spent 15 years there and have family in country but will never go back while Chevaz is in power.gdm
I've noticed Venezuela's bonds as well. I've put money in a number of dubious projects over the years, but I'll avoid putting money in an avowed enemy of the US. Even without the patriotic/moral qualms, this one appears to be a sinking ship. (Hopefully the Venezuelan people will have the good sense to show Chavez the exit before the country is drained of all its wealth.)
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