Venezuela’s Bond Plummet Can’t Sway BofA as Losses Mount

Being bullish on Venezuela’s bonds hasn’t quite panned out for Bank of America Corp. and Barclays Plc. Still, neither are prepared to give up their calls.

Since Bank of America recommended the debt in February, the nation’s securities have plunged 14 percent as speculation deepened that Venezuela is running out of money. While the selloff has been the biggest among emerging markets, Francisco Rodriguez, Bank of America’s senior Andean economist, says investors should buy the bonds because the government still has the wherewithal to avoid a default. Yields surpassing 20 percent suggest investors are overstating that risk, he says.