Article

2017-05-29 Caribbean-Latin America

Goldman Sachs Bought Venezuela's State Oil Company's Bonds Last Week

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by Frank G 2017-05-29 08:18|| || Front Page|| [4 views ] Top

#1 Now we're going to suddenly the drum banging about why we need to 'get involved' in Venezuela.

Posted by ed in texas 2017-05-29 08:45|| 2017-05-29 08:45|| Front Page Top

#2 this may be only one part of a multiple prong hedge

on the other hand, I'm surprised that anyone would pay 0.70 on the dollar for Venez 2022 bonds - this is better than the discount that Puerto Rico 2035 bonds have, about 0.60. Also 10 yr Greek bonds are going for about 0.60

Posted by lord garth 2017-05-29 10:06|| 2017-05-29 10:06|| Front Page Top

#3 According to the article: The New York-based bank’s asset management division last week paid 31 cents on the dollar, or about $865 million...

So 31 cents on the dollar, the bonds still have to be paid back in 2022 and the full price of the bonds must be paid.

How much do you want to bet that of the 865 million dollars, all of it will go into various off shore accounts and none of it will be used to buy food, medicines and the like?

There's more I'll like to say on this subject but...

Posted by Seeking cure for ignorance 2017-05-29 11:03|| 2017-05-29 11:03|| Front Page Top

#4 Goldman Sachs isn't buying the bonds, some shell that is off loaded (see Fanny Mae) to pension funds, foreign banks, holding companies et al are buying the funds. Or in that 2008-9 example, ultimately the American taxpayer in bailouts for those stiffed by the issuer who knowingly buy the crap.

Too big to fail? Not for someone who knows how to play the game. Re-charter the First Bank of the United States (see Hamilton), absorb all the assets as well as the huge liabilities they try to off load this time on the taxpayers, and fire the first three levels of management, telling the stockholders you bet wrong.

Posted by Procopius2k 2017-05-29 11:41|| 2017-05-29 11:41|| Front Page Top

#5 But, who is going to buy Sears?

Posted by Gloluling Poodle6888 2017-05-29 12:19|| 2017-05-29 12:19|| Front Page Top

#6 Goldman Sachs gives a new meaning to the term greed.

Their "advice" is what caused the collapse of Greece's economy (they gave the Greeks some nifty advice about how to hide their debt among other things) and took a big fee.

More and more everyday I think these big brokerage houses are just big criminal enterprises.

Posted by Sock Puppet of Doom 2017-05-29 15:12|| 2017-05-29 15:12|| Front Page Top

#7 The only solution to this issue is to invest in lamp posts and rope. This is appalling.

Posted by Alaska Paul 2017-05-29 16:35|| 2017-05-29 16:35|| Front Page Top

#8 As noted, they will look to onsell to pension funds etc desperate for yield.

The fund managers who buy them will get hefty bonuses if they payoff, and they will probably move on if they don't.

The problem is perverse incentives that encourage too much risk.

Posted by phil_b 2017-05-29 17:19|| 2017-05-29 17:19|| Front Page Top

#9 The leader of the Venezuelan (Opposition) Congress just announced they will not pay the bonds when they come due.

Posted by Voldemort Trotsky1672 2017-05-29 20:17|| 2017-05-29 20:17|| Front Page Top

22:44 james
21:43 Jeasing Creque5352
21:39 Blossom Smiter of the Bunions8892
21:37 Jeasing Creque5352
20:47 Pappy
20:33 Sheba McGurque2248
20:17 Voldemort Trotsky1672
20:15 Voldemort Trotsky1672
20:01 JHH
19:47 JHH
19:41 Skidmark
19:39 Skidmark
19:38 AlmostAnonymous5839
19:34 AlmostAnonymous5839
19:31 Richard Aubrey
19:13 Creling Pelosi3622
18:16 Ominesh Gloluper3999
17:55 trailing wife
17:36 trailing wife
17:32 Thing From Snowy Mountain
17:19 phil_b
17:05 Sgt.D.T.
16:38 Alaska Paul
16:35 Alaska Paul