Credit Suisse Tips Vene Curve Trade

Credit Suisse sees relative value in the Venezuela bond curve, following a period of high market volatility. It recommends switching out of 2016s and into 2018s at a potential spread pickup of 36bp. The shop also closed out a 2020 into 2027 switch that outperformed because of a flattening in the yield curve. “However, given the choppiness of the market, execution of the 16 into 18 switch may not be feasible at this attractive spread,” says the shop.