We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Should Creditors Pay the Price for Dubious Bonds?

10 30 0

DURHAM/GENEVA/CHAPEL HILL – In late October, Venezuela is likely to default on a $913 million payment on a key bond. Because the country has already defaulted on most of its debt, one might be tempted to regard another missed payment as no big deal. But this bond, issued by the national oil company Petróleos de Venezuela, S.A. (PDVSA), and referred to as PDVSA 2020, is backed by juicy collateral: a controlling stake in Venezuela’s economic crown jewel, United States-based refiner CITGO.

  • The Impeachment Trap Melina Mara/The Washington Post via Getty Images

    The Impeachment Trap

    Eric Posner argues that the Democrats are about to learn the hard way what Republicans found out in 1998.

    45 Add to Bookmarks

  • Can Capitalist Democracy Survive? PS OnPoint Getty Images

    Can Capitalist Democracy Survive?

    William H. Janeway considers whether the marriage of market economics and representative government will survive its latest crisis.

    29 Add to Bookmarks

  • The Constitution Won’t Save American Democracy Brendan Smialowski/Getty Images

    The Constitution Won’t Save American Democracy

    Daron Acemoglu & James A. Robinson argue that only social mobilization can remove the threat President Donald Trump poses to US institutions.

    12 Add to Bookmarks

  • Previous Next

    Ordinarily, unpaid bondholders could tell the bond trustee to seize the collateral. But, given its dubious provenance, the PDVSA 2020 is no ordinary bond. It was issued in 2016, when PDVSA was close to default. To buy time,........

    © Project Syndicate