Venezuela is plagued by widespread hunger, skyrocketing infant mortality and 500% inflation. Yet its sovereign bonds are the best performers in emerging markets this year, delivering investors a return of 46% through September. The government of President Nicolás Maduro continues to pay billions of dollars annually to service Venezuela’s debt, even as it is unable to import enough food and medicine. The situation has polarized emerging-markets investors. Some large fund managers are doubling down on Venezuelan bonds for...

Source: Wall Street Journal October 23, 2016 10:52 UTC