Jay Newman Warns Investors of Venezuela’s ‘Anti-Creditor Army’
- Hedge fund veteran says sovereign looks like ‘superior credit’
- New regime will recognize creditors aren’t the enemy, he says
Distressed debt veteran Jay Newman says early signals from Venezuela’s next government are bad news for bond investors expecting a quick windfall.
The former star fund manager at Elliott Management Corp., who helped billionaire Paul Singer win a 15-year fight against Argentina after its $95 billion default in 2001, says National Assembly leader Juan Guaido and his advisers seem to be gearing up for a tough legal fight as they seek to take the reins of the executive branch. Add in likely pressure from International Monetary Fund officials more interested in repairing the economy than making investors whole, and bondholders will have their work cut out for them.
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