JPMorgan, BofA Favor Venezuela Bonds With More Unpaid Interest
Buildings in the skyline of Caracas, Venezuela.
Source: Bloomberg
JPMorgan Chase & Co. and Bank of America strategists are urging clients to buy Venezuelan global bonds with large piles of unpaid interest, betting they could outperform ahead of a potential debt restructuring.
The banks favor shorter-dated notes that have accumulated significant past-due interest, or PDI. Many trade at steeper discounts than longer maturities, leaving room to rally if restructuring terms ultimately reward those arrears.