Morning Commentary: Venezuela, PDVSA bonds flat to higher despite missing payment; Russia on tap

By Rebecca Melvin

New York, Sept. 21 – Venezuela sovereign and Petroleos de Venezuela SA bonds were mostly flat to higher early Thursday despite missing a payment due Sept. 15 that the government says has been delayed due to technical difficulties.

The payment due on the Venezuela 2017 bonds was for $155 million. The government has tweeted out that the payment will be made, but as of late Wednesday investors had not received the payment, a market source said.

Nevertheless the market didn’t seem too worried as the Venezuela curve has been flat for several days, having bounced off the lows marked two weeks ago and hanging mostly in the upper level of that range, the source said.

The PDVSA 2017 bonds, which mature Nov. 7, were flat to higher at 92 bid, 93 offered early Thursday, which was little changed for the last three days.

Elsewhere, Russia was reported to have launched $3.4 billion of taps of its 2027 and 2047 bonds. The $2 billion 2027 tap was pricing at a 4% yield and the $1.4 billion of 2047 bonds was pricing with a 5¼% yield, a market source said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.