Markets view Venezuela as a high-risk country despite high oil prices

Since oil prices are climbing, thus ensuring enough funds for Venezuela to meet its obligations, investors should view Venezuela as a low-risk country. However, the lack of confidence in the South American lingers. Venezuela’s country risk -an indicator of the spread between the yield an investor demands in order not to buy US Treasury bonds and purchase instead Venezuelan sovereign bonds- started the week at 11 percent. This figure exceeds by far Chile’s 1.16 percent; Peru’s 1.48 percent; Colombia’s 1.49 percent; Mexico’s 1.64 percent; Brazil’s 1.75 percent; Argentina’s 4.95 percent and Ecuador’s 8.41 percent. Read Article