Goldman Sachs’ asset-management arm is catching heat for buying up nearly $3 billion worth of bonds issued by Venezuela’s state-owned oil company at a knockdown price. Given the negative vibes, why do highbrow investors buy such junk-grade bonds in the first place? Bonds such as those issued by Venezuelan oil giant Petróleos de Venezuela SA, or PdVSA, are among the most commonly traded in the emerging-markets world. Such debt is...

Source: Wall Street Journal May 31, 2017 09:45 UTC