These guys don’t play carritos: market gossip says some of these funds have already prepared their line-up of sovereign default lawyers. Los propios buitres.

Their thesis on Venezuela was the reason they started to get really interested (as in, vultures circling over a dying animal) in 2015: bond prices are so low, and yields are so high, that they argue buying on the ‘holdout’ issues – those without the legal provisions that allow for a negotiated restructuring – and holding while waiting for the end-game, is a killer trade. So far, time has proved them right.

What happens to them if VENZ defaults? They are mindful of the event’s likelihood of happening; that’s why they buy the paper with no collective action clauses and a weak pari passu clause (VENZ 18/27 and long-end PDVSA), and would likely become holdouts in the event of a default, seeking full repayment from the Oil Company and/or the Sovereign through all legal means at hand. These guys don’t play carritos: market gossip says some of these funds have already prepared their line-up of sovereign default lawyers. Los propios buitres.

Market share: 15-20%

Biggest names: Elliott, Ashmore, Emso, Gramercy, Stone Harbor, Autonomy, Marathon, Brevan Howard.