Venezuela’s cash-strapped leftist government has defaulted on sovereign debt and bonds issued by state oil firm PDVSA after failing to make timely payments, a New York-based derivatives group ruled on Thursday. The International Swaps and Derivatives Association (ISDA) committee’s unanimous decision that the delays constitute a “credit event” triggers limited payouts on credit default swaps (CDS). But investors said they did not expect a significant market reaction from the ISDA decision, given that Venezuela is making efforts to pay, and that holders of some of the world’s highest yielding debt have so far been tolerant of the delays. Sponsored They also noted that the values of the CDS – the derivative contracts investors use to protect themselves against a default – were not […]