This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Market Vectors’ Fran Rodilosso On Uncertainty And Market Sentiment Surrounding Venezuelan Debt

Venezuelan President Hugo Chavez continues to battle serious health problems, according to a number of recent news reports, and questions as to whether he will be able to attend his own inauguration, scheduled for next week, or even how much longer he may have to live, have set off a round of uncertainty for investors in Venezuelan sovereign bonds, according to Fran Rodilosso, fixed income portfolio manager at Market Vectors ETFs.

“At this point, I think one must assume that Chavez will not return from Cuba in time for his inauguration, and perhaps may not return at all,” says Rodilosso. “If a miracle of sorts does occur, and Chavez does return, bringing back some aspect of status quo, the most recent rally in Venezuelan debt will most likely unwind. But I think the market should find a floor before too long since it has, over the last 14 years, come to accept that Chavez, no matter how he governs, has for the moment demonstrated both the ability and willingness to pay his country’s debts.”

“Still, reports of the imminent death of Chavez, exaggerated or not, have added a large amount of upward volatility to the market,” added Rodilosso.

“What is concerning though, is that there is a process that must take place if and when Chavez becomes officially unfit to serve. Are the country’s institutions strong enough to withstand the possibility of some form of constitutional crisis? I am not sure we know that answer. But I think the consensus is that what ultimately emerges, be that Chavez’s current Vice President, Nicolas Maduro, or a leader from the opposition, raises the possibility of policy changes and even potentially an improved relationship with the U.S. An extended period of uncertainty about succession may lead to buying opportunities at lower levels. Ultimately, the market is telling us that a better governed Venezuela would potentially be a stronger credit,” Rodilosso said.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs