Wall Street Has No Idea How Much Money Venezuela Has
Source: Bloomberg Business News
Bond investors suspect the Venezuelan government is pretty low on cash. Just how low, though, is a tricky question.
After all, this is a country that has stopped releasing even the most basic economic data -- things like inflation and government spending -- on a timely basis.
Given how high the stakes are, with many investors bracing for an imminent default, Wall Street analysts are scrambling to fill the void. Firms including Bank of America Corp. and Barclays Plc have created their own statistical series to try to help investors understand how dire the country’s cash squeeze is. It’s a challenging exercise, they say.
“We’ve had to build these series based on everything you can imagine,” Francisco Rodriguez, a Venezuelan native who covers the country for Bank of America, said by telephone from New York. “I feel like a private detective. You have to try to find the data. At least the police have power to gather evidence -- I don’t have any.”
Read more: http://www.bloomberg.com/news/articles/2015-04-21/wall-street-is-refusing-to-accept-venezuela-s-blackout-of-data
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