für unsere oberpfeife no-brainer depperter doofanwalt jack11 // die verpasste VEN-Rally // The securities have gained 25 percent since Dec. 16, according to JPMorgan’s EMBI Global Venezuelaindex,

Venezuelan bonds posted the biggest five-day advance in at least 20 years, climbing from near a record low as oil prices pared this year’s drop.

The securities have gained 25 percent since Dec. 16, according to JPMorgan’s EMBI Global Venezuelaindex, pushing yields on benchmark debt due in 2027 down to 21 percent as of 11:54 a.m. today in New York from 26 percent a week ago.

The bonds rallied as oil advanced from a five-year low after data showed economic growth in the U.S. increased at the fastest pace in more than a decade in the third quarter. The commodity, which is still down 43 percent this year, accounts for more than 95 percent of Venezuela’s exports. While oil’s recovery is bolstering the outlook for dollar flows to Venezuela, the country’s reserves cover just two years of debt payments and President Nicolas Maduro hasn’t announced the types of measures to conserve cash that analysts say are needed.

“You had oil prices starting to stabilize which is exactly what Venezuela wanted,” Siobhan Morden, head of Latin American fixed-income strategy at Jefferies Group LLC, said by phone from New York. “A sustained rally isn’t very likely unless we get a huge rally in oil or some kind of policy action from the authorities, which is even less probable. Any rebound in Venezuela will be driven by external factors because the government isn’t about to make any big announcement.”

Venezuela’s credit rating was lowered to seven levels below investment grade on Dec. 18 by Fitch Ratings, which cited the country’s low level of international reserves amid the drop in the price the country receives for its oil exports.

Contracts to protect Venezuelan bonds against non-payment show an 88 percent chance the country will default at some point in the next five years, according to data provider CMA.

To contact the reporter on this story: Sebastian Boyd in Santiago at sboyd9@bloomberg.net

To contact the editors responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net Rita Nazareth

http://www.bloomberg.com/news/2014-12-23/venezuelan-bonds-post-biggest-five-day-rally-in-20-years-on-oil.html