Bloomberg News

Bank of America Raises Venezuelan Debt to ‘Overweight’

February 22, 2012

Feb. 22 (Bloomberg) -- Bank of America Merrill Lynch raised its recommendation on Venezuelan debt to “overweight” from “marketweight” on rising oil prices, a potential for less- than-expected issuance in 2012 and the possibility that President Hugo Chavez won’t run for re-election due to his battle with cancer.

“Although there is no way of predicting the outcome and whether Chavez will remain president, we believe the prospects of a more moederate regime along with financial strength coming from increased oil prices should lift bonds,” analysts Francisco Rodriguez and Jane Brauer wrote in a report today. “The carry is the best in all of EM.”

Bank of America recommends buying Venezuelan bonds maturing in 2022, 2026 and 2031 as they are “cheap to the curve,” the analysts said in the report.

To contact the editor responsible for this story: Daniel Cancel at

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