Venezuela crisis weighing heavy on investors’ minds

Author: John Crabb | Published: 15 Feb 2019

As the political situation in Venezuela approaches what must surely be its end-game, emerging market investors and traders are taking stock of their options. Although the existing regime is subject to heavy sanctions and restrictions that prohibit US entities from buying or selling sovereign or private stocks, sources believe that it is only a matter of weeks until a significant regime change allows the country to be lifted from these economy-crippling measures.

"In our view, the international efforts underway to restore full democracy in Venezuela and reverse the humanitarian and economic catastrophe set in motion the end-game for the Bolivarian experiment," said Nathan Sandler, managing partner at ICE Canyon, an investment firm specialising in emerging markets.

"We think it will culminate in a regime change within three months. As a result, we view Venezuela and PDVSA debt to be significantly undervalued, and have started to rebuild our exposure for the...