There is a lot of interest from foreign investors in the bonds issued by Venezuela's government and its state oil firm, which offer high returns but are consistently rated by risk indicators as having the world's greatest chance of default.
This month, PDVSA launched another $3 billion bond in its latest bid to juggle its many obligations to service providers, nationalized companies and social spending. [ID:nN25262594]
Speculation about any sale of Citgo has also jacked up interest in the $300 million of notes that were issued by the U.S. refiner and mature in 2017, secured by its refineries, its inventories and a portion of its accounts receivable.
"If Citgo is sold, these bonds with an 11.5 percent coupon will fly," said Russ Dallen, head trader at Caracas-based BBO Financial Services. http://www.reuters.com/article/venezuela-refineries-citgo-idUSN2822676820101028