We are now 10 days into the continuing non-payment of Venezuela & PDVSA bonds, with Electricidad de Caracas being the longest failure. At today's close, there were no interest payments made on the $349 million owed so far. That "technical default" amount rises by another $237 million tomorrow, when 2 more Venezuela bond coupons are due. Those checks were not in the mail today either.

We are now 10 days into the continuing non-payment of Venezuela & PDVSA bonds, with Electricidad de Caracas being the longest failure.

At today's close, there were no interest payments made on the $349 million owed so far.

That "technical default" amount rises by another $237 million tomorrow, when 2 more Venezuela bond coupons are due.  Those checks were not in the mail today either. 

Worse still, neither Venezuela nor PDVSA have made any explanation for the non-payment.

In addition, no money of that size or magnitude signalling attempted payment has come out of reserves this month as of tonight's figures, with the reserves ending up $1 million to a supposed $10.015 billion today.

Over the last couple of weeks, we have spoken to a number of our friends and colleagues at PDVSA and the Central Bank and Finance Ministry and will be reporting more in a longer report next week.

At any rate, the widespread non-payment of a whole group of different bonds -- PDVSA, Venezuela, Electricidad de Caracas --  with a variety of different banking accounts and paymasters is a tell to us.

We'll explain more in our report next week.

As you can imagine, the widespread lack of payment -- and the lack of an explanation from PDVSA or Venezuela -- is also taking a toll on bond prices as the following closing markets show.

Good New - Bad News: 

Bad News: The widespread belief of a 30 recovery value that caused resistance to stay below that level was firmly broken today. 

Good News (except for GS):  That $2.8 billion Goldman Sachs PDVSA 6% of 2022 are now firmly below 30.  They are now bid 5 points below where Goldman bought them from the Maduro Regime in May, meaning Goldman has a $140 million loss from the whole position so far. #Schadenfreude 

Have a great weekend!

                                          --Russ

P.S.  I will be in DC and New York next week meeting with clients and I am happy to meet with you as well about any of these issues, especially what we know about Venezuela's debt payments -- or the lack of them.  I can also invite you to an event on Venezuela at which I will be speaking at the Council of the Americas on Thursday, along with brilliant Venezuelan minds Francisco Monaldi and Eric Farnsworth.  Please do get in touch!

 

Security	B Px		A Px	B YTC		A YTC	B Spd		A Spd	Fitch	Moody	S&P	Amt Out
VENZ   13⅝  18	73.50	-	75.50	59.052	/	54.728	5748	/	5315	CC	Caa3	CCC-	752.811MM
VENZ   7     18	62.00	-	63.00	58.270	/	56.360	5669	/	5478	CC	Caa3	CCC-	1MMM
VENZ   7¾   19	44.50	-	45.00	58.977	/	58.177	5740	/	5660	CC	Caa3	CCC-	2.496MMM
VENZ   6     20	37.00	-	38.00	45.790	/	44.588	4408	/	4287	CC	Caa3	CCC-	1.5MMM
VENZ   12¾  22	42.00	-	42.75	47.352	/	46.520	4533	/	4450	CC	Caa3	CCC-	3MMM
VENZ   9     23	33.00	-	33.50	39.758	/	39.250	3774	/	3723	CC	Caa3	CCC-	2MMM
VENZ   8¼   24	32.75	-	33.50	33.987	/	33.341	3160	/	3096	CC	Caa3	CCC-	2.496MMM
VENZ   7.65  25	31.75	-	32.50	32.324	/	31.698	2994	/	2932	CC	Caa3	CCC-	1.6MMM
VENZ   11¾  26	36.50	-	37.25	35.616	/	34.973	3324	/	3259	CC	Caa3	CCC-	3MMM
VENZ   9¼   27	35.75	-	36.50	29.548	/	29.014	2717	/	2663	CC	Caa3	CCC-	4MMM
VENZ   9¼   28	31.50	-	32.00	32.441	/	31.999	3006	/	2962	CC	Caa3	CCC-	2MMM
VENZ   11.95 31	37.00	-	37.75	33.350	/	32.734	3097	/	3035	CC	Caa3	CCC-	4.2MMM
VENZ   9⅜   34	32.50	-	33.00	29.488	/	29.071	2660	/	2618	CC	Caa3	CCC-	1.5MMM
VENZ   7     38	30.75	-	31.50	23.332	/	22.814	2044	/	1993	CC	Caa3	CCC-	1.25MMM
PDVSA  8½   17	92.25	-	93.00	370.933	/	333.295	36952	/	33188	CC	N.A.	CCC-	1.121MMM
PDVSA  8½   20	82.50	-	83.25	24.309	/	23.490	2274	/	2192	CC	Caa3	CCC-	3.368MMM
PDVSA  9     21	40.75	-	41.50	49.339	/	48.379	4762	/	4667	CC	N.A.	CCC-	2.394MMM
PDVSA  12¾  22	42.00	-	42.75	51.806	/	50.866	5009	/	4915	CC	N.A.	N.A.	3MMM
PDVSA  6     24	28.25	-	29.00	38.187	/	37.381	3617	/	3536	CC	N.A.	CCC-	5MMM
PDVSA  6     26	27.75	-	28.50	30.741	/	30.092	2836	/	2771	CC	N.A.	CCC-	4.5MMM
PDVSA  5⅜   27	28.25	-	29.00	26.187	/	25.645	2381	/	2326	CC	N.A.	CCC-	3MMM
PDVSA  9¾   35	32.75	-	33.50	30.335	/	29.693	2745	/	2680	CC	Caa3	N.A.	3MMM
PDVSA  5½   37	28.15	-	29.00	20.699	/	20.162	1781	/	1727	CC	N.A.	CCC-	1.5MMM
------
ELECAR 8½   18	66.00	-	68.00	123.977	/	114.001	12240	/	11243	CC	N.A.	CCC-	650MM

Russ Dallen | Managing Partner
Caracas (58) (212) 335-1906
Miami (305) 735-8280
New York (917) 499-8346
London (44) (207) 993-4557
RMDallen@CaracasCapital.com