Market dislikes Venezuela reforms but debt rallies again
By Paul Kilby
NEW YORK, Feb 18 (IFR) - Venezuela's debt kept rallying Thursday in tandem with oil, but analysts threw cold water on new government measures they said would do little to fix the country's economic crisis.
President Nicolas Maduro late Wednesday announced measures including a currency devaluation and a hike in the price of heavily subsidized petrol to try to address the crisis.
Even as analysts dismissed the moves, the country's debt again inched higher as crude prices - one primary source of Venezuela's woes - pushed up sharply.
The sovereign's 8.25% 2024s, which had jumped around four points this week as oil rebounded, gained another 1.5 points to trade at 35.36.
Meanwhile the 2024s of state-owned oil giant PDVSA, which with subsidized petrol has borne the brunt of the oil price collapse in the past year, were up about a point around 30-31.
GOOD AND BAD
Indeed, Venezuelan debt has tightened some 30bp over the past 10 days, making it the best-performing LatAm sovereign on the Bank of America Merrill Lynch Master Index in that time. Continuación...