LONDON: Venezuelan dollar bonds rallied on Monday, with yield spreads over US Treasuries falling to the narrowest since August 2008 on news that the country's ailing President Hugo Chavez had named a successor.
Venezuela's portion of the EMBI Global index traded at 775 basis points over US Treasuries, 38 basis points tighter than the Friday close. The most-traded 2027 dollar bond jumped 2.3 cents on the dollar to 101.092 points
Five-year credit default swaps fell to 610 bps from the Friday close of 642 bps, according to Markit data.
Chavez stunned Venezuela over the weekend with an announcement that he had suffered a setback in his long-term battle with cancer and named Vice President and Foreign Minister Nicolas Maduro to take over, should he become incapacitated.
This is the first time the left-leaning leader has ever nominated a successor.
Center>Copyright Reuters, 2012
Comments
Comments are closed for this article.