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@Ted, The link you provided took me to a M* sign-in page. I’m not inclined to fill in the blanks.
If the article you tried to link suggests that there might be a distressed debt buying opportunity in funds holding these Venezuelan bonds at some point, I’m inclined to agree - based on the apocalyptic blurb @Maurice cited. That’s because things are rarely as bad (or good) as the pundits would have us believe.
However, there’s a lot of different pieces in motion in this case: (1) the unpredictable and depressed energy market, (2) the exchange rate with the U.S. dollar - dependent to some extent on unpredictable U.S. Fed policy, and (3) the future health of the global economy - since EMs usually suffer more during periods of financial distress.
Yes, I'm watching closely. PREMX has never let me down, ever since I got in, in 2010. The M* article mentions PDVSA bonds (or Venezuela in general) comprise 5% of holdings in PREMX. I like the monthly income, and it's been re-invested since I first started with PREMX. If there's an ootsy period of distress and itchiness, I expect I'll just ride it out. These days, it's 13.89% of my portf.
Comments
Regards,
Ted
M*: The Case for Venezuelan Bonds:
http://news.morningstar.com/articlenet/article.aspx?id=826833
PREMX
BEDIX
EMKIX
FNMIX
TGEIX
FTBFX
If the article you tried to link suggests that there might be a distressed debt buying opportunity in funds holding these Venezuelan bonds at some point, I’m inclined to agree - based on the apocalyptic blurb @Maurice cited. That’s because things are rarely as bad (or good) as the pundits would have us believe.
However, there’s a lot of different pieces in motion in this case: (1) the unpredictable and depressed energy market, (2) the exchange rate with the U.S. dollar - dependent to some extent on unpredictable U.S. Fed policy, and (3) the future health of the global economy - since EMs usually suffer more during periods of financial distress.
Bottom line: I like Venezuela’s baseball players more than I like their bonds. https://www.baseball-reference.com/players/c/cabremi01.shtml