There has been a certain ebullience in market sentiment toward Venezuela since the capture in early January of former Venezuelan president Nicolás Maduro by U.S. military forces. Venezuelan sovereign and PDVSA bonds rallied sharply as investors anticipated that a political transition might finally pave the way for long-delayed debt restructuring negotiations. The rally has continued following Venezuela’s recent announcement that it intends to launch a restructuring process and has retained outside financial and legal advisers. [....]