That is the dilemma facing holders of debt issued by the Venezuelan government and its sovereign and quasi-sovereign entities. The issue has been labelled a “moral quandary” by The Wall Street Journal, put Goldman Sachs in the headlines and prompted a Harvard professor to call on index providers to exclude Venezuela from benchmarks used widely by investors. This consideration is often embraced by those who believe that, being an oil producer that needs to maintain critical international linkages, Venezuela will go to huge lengths to make its debt service payments on the global bonds it has issued. As an illustration, consider some of the recent press coverage of Venezuelan bonds. Second, place greater pressures on industry groups, advisory bodies and index providers to move toward a common view and collective approach.

Source: Mint June 05, 2017 18:56 UTC