(Reuters) - Venezuela's sovereign bonds rallied on Thursday, a day after the United States lifted its ban on secondary market trading of some of the country's eurobonds.
Quotes for the South American nation's sovereign debt rose to as much as 20 cents on the dollar while a 2020 note of state oil company PDVSA was up 13 cents at 66.5.
"Prices have almost doubled in the past 24 hours but are still well below the pre-sanctioned levels," said Edward
Cowen, CEO of Winterbrook Capital, who has co-invested in a fund to buy Venezuelan debt.
"Expectations of recovery value on a full restructuring vary between 40-55 cents," he added, saying that a return to Venezuela's regular weighting on global indexes like
JPMorgan's would give the prices further support.