2024-02-23 19:05:24
Caracas.- The financial company JPMorgan & Chase Co. would have communicated with Venezuelan bondholders to “normalize the weighting” of the country’s international bonds in its EMBI index (Emerging Markets Bond Indicator, for its acronym in English).
According to Reuters, related sources stated that the JPMorgan team would be talking, informally, with investors to discuss the issue.
It is important to note that the conversations would be taking place following the United States lifted sanctions on the negotiation of some bonds issued by Petróleos de Venezuela SA (Pdvsa) in the secondary market.
PDVSA and Venezuela have around US$60 billion in international bonds in circulation, which are in default.
The weighting of Venezuelan bonds went to zero in November 2019 following the broad sanctions imposed by the US.
However, until then the Wall Street bank maintained Venezuelan bonds in its emerging market fixed income index.
It is important to explain that JPMorgan’s EMBI indices are the main reference point for hard currency bonds issued by emerging market countries, so increasing Venezuela’s rating “would trigger purchases by index funds.”
With information from Agencies
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