Why Goldman Sachs Just Made An Embarrassing Bet On Venezuela

[McFurd]

Forbes - 6/1/2017 - Ellen R. Wald - Goldman Sachs bought previously issued bonds for Venezuela’s national oil company, PDVSA, on Monday. They were worth $2.8 billion, but Goldman bought them at a steep discount of only $865 million because of the severe political and economic instability of Venezuela. Goldman Sachs, apparently, was unaware that: 1) Historically, when a political party is forced out through revolution, coup, or other extralegal means, the new government does not always pay the debts incurred by the old one, and 2) It is strategically beneficial to the opposition party in Venezuela to deny payment to Goldman Sachs. Read more @ https://www.forbes.com/sites/ellenrwald ... 2e984d4f85