“Cash-Strapped” Venezuela Stares Into The Abyss… And Its Default Risk Goes Parabolic…(Who’s Next?!)
by Tyler Durden
ZeroHedge.com
12/08/2014
Some two weeks ago (when Venezuela CDS was trading at 2300 bps) we previewed what – with almost absolute certainty – would be the first “casualty of the crude carnage” – Nicholas Maduro’s little socialist paradise that couldn’t: Venezuela. As a reminder, back then we learned that the OPEC member was in such dire straits it had burned through a third of a Chinese’ bailout loan in the matter of days. Since then things have gone from bad to worse to freefall and why earlier today Venezuela CDS soared again by several hundred points wider touching 3100 bps (800 wider since our first post) and is now in record wide territory – suggesting the same probability default risk as when just after the Lehman collapse, crude traded briefly as low as $30 – as the bankruptcy vultures start circling over what will most certainly be the next sovereign bankruptcy carcass.
The Rest…HERE