By Nathan Crooks and Sebastian Boyd
When OPEC nations meet in Vienna this week to discuss whether to cut production, Venezuelabondholders will be paying close attention.
The nation’s dollar-denominated notes have lost 25 percent in the past three months, the most in emerging markets, as the biggest plummet in the price of Venezuelan crude since the global financial crisis in 2008 deepens concern the government will default. Yields on the country’s benchmark bonds due 2027, which reached a six-year high this month, have soared 5.29 percentage points to 18.4 percent over that span.
With Venezuela’s foreign-currency reserves hovering close to an 11-year low and oil accounting for 95 percent of its export revenue, the nation needs the Organization of Petroleum Exporting Countries to agree to reduce global output to help bolster its finances, according to Credit Suisse Group AG. The 20 oil analysts surveyed last week by Bloomberg were ... Read More