Contrarian approach to investing in Venezuelan bond market

Santiago

WANT to make money in Venezuela's bond market? Ignore the conventional wisdom.

Stone Harbor Investment Partners LP has done just that. The New York-based money manager has been buying up the country's soon-to-mature notes as a bet that the struggling oil-producing country will scrounge up enough cash to continue making payments in the short-term. The move has paid off, with bonds maturing next month from Venezuela's state-owned oil company returning 37 per cent since the end of 2014. On average, emerging-market bonds lost 0.5 per cent this year.