Hedge funds are seeking out billions of dollars’ worth of financial claims tied to Venezuela, as investors bet that Donald Trump’s bid to reshape the country could prompt it to repay old debts.
Investors seeking exposure to a potential turnaround in the embattled nation have this week begun hunting for instruments that would profit if Venezuela and its state oil company make good on years of unpaid bills.
The clamour for these claims has come amid a rally in the country’s bonds as the investors hope that the US capture of strongman Nicolás Maduro brings the country closer to a long-delayed restructuring of its debt following a default in 2017. Venezuela also owes several big corporations money after nationalising assets in 2007.