Buy Venezuela, Sell Ukraine: Societe Generale

Investments in Venezuela come with plenty of political risk, but that risk may already be priced in, making it a better deal than countries where risk is growing but not yet reflected in bond yields. Societe Generale analyst Régis Chatellier thinks it’s a good time to shift investments from the Ukraine to Venezuela to take advantage of a spread that looks like it will narrow. Venezuela and Ukraine ratings “We recommend buying the Venezuela $2026 and selling the Ukraine $2023 on a cash neutral basis. We expect the spread between the two bonds to narrow by 150bp in the next…