Venezuelan Bonds Fall as Chavez Returns From Cuba: Caracas Mover
By Nathan Crooks & Corina Pons - Dec 7, 2012 4:19 PM GMT+0100
Venezuelan bonds fell, pushing yields up from the lowest level since
February 2008, after President Hugo Chavez broke a 21-day silence and
returned from cancer treatment in Cuba.
The yield on Venezuela's benchmark 9.25 percent securities due in 2027
rose 26 basis points, or 0.26 percentage point, to 9.43 percent at 10:12
a.m. in Caracas, according to data compiled by Bloomberg. The bond's
price fell 2.02 cents today to 98.58 cents on the dollar, the biggest
one-day drop since Oct. 9. The yield tumbled yesterday on speculation
that Chavez is too sick to complete a third term.
State-run Venezolana de Television broadcast images of Chavez waving and
smiling as he came off a plane. The self- proclaimed socialist, who has
seized companies and imposed currency and price controls during his 14
years in office, said he was "very excited" to be back in Venezuela.
"Venezuelan bond prices will stay high, even with the arrival of the
president," Alejandro Grisanti, a Latin America analyst at Barclays Plc
in New York, said today by phone. "There has been a change in Chavez's
actions that lead one to believe that he is very sick. Even though he
showed up on TV coming back to Caracas, he was still absent for three
weeks."
http://www.bloomberg.com/news/2012-12-07/venezuelan-bonds-fall-as-chavez-returns-from-cuba-caracas-mover.html
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