The Credit Edge by Bloomberg Intelligence The Long Road to Making Venezuela's Debt and Oil Investable Again
Jan 13, 2026
Spencer Cutter, a Bloomberg Intelligence analyst specializing in US energy, joins Damian Sassauer, an emerging-markets credit strategist, to discuss the complexities of investing in Venezuela post-regime change. They explore the enormous challenges for debt recovery and the massive capital needed to revitalize the oil sector. The duo highlights the potential for American and Canadian refineries, particularly Chevron, to benefit from Venezuela's heavy crude, while also examining how Chinese interests could shift amidst U.S. influence.
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Resource Potential Hinges On Governance
- Venezuela holds massive natural-resource potential including top global oil and gas reserves and rare earths.
- Realizing that value depends on cleaning up governance and making the country investable first.
Debt Held By Distressed Specialists
- Most Venezuelan debt is held by distressed, event-driven investors rather than mainstream funds.
- Few large active managers or pension funds currently carry meaningful exposure to Venezuelan bonds.
Citgo-Backed Bonds Trade Above Par
- Not all Venezuelan bonds are equal; some are secured by Citgo and trade above par.
- Secured claims like the 8.5% PDVSA 2020 bond change recovery dynamics materially.