Key Financial And Commodity Futures

BY BLOOMBERG NEWS

Itmay be in their name, but Venezu-elan-dedicated hedge funds aren’tso dedicated to Venezuela any-more.Even the boldest money man-agers are losing hope that the na-tion can keep servicing its debt.

Russ Dallen, who oversees theVenezuela Opportunity Fund, lastmonth told clients for the first timein his career to buy credit-defaultswaps to protect against a default.

Gramercy Funds Management,which started a Venezuela Oppor-tunity Strategy fund in 2015, soldits Venezuelan assets late last year.And Ashmore Group, known for itsbullish comments on Venezuela,cut its exposure during the past 12months.

“They are hitting bottom,” saidDallen, themanaging director atCa-racas Capital. “No one appears tobe bailing them out this time.”

An International Swaps & Deriva-tives Association committee ruledyesterday that delays in debt pay-ments by the nation and by state-run Petroleos de Venezuela SA trig-geredpayouts on morethan $1.5 bil-lion of credit-default swaps. Thatcame after default declarations byFitch Ratings, S&P Global Ratingsand Moody’s Investors Service.

Although Nicolas Maduro’s gov-ernment has insisted that it willcontinue honoring foreign debts,U.S. sanctions have led to delays inprocessing bond payments andmake restructuring efforts almostimpossible.

Meanwhile, in Asia the People’sBank ofChina aims tocreate an “op-timal” environment to help stabi-lize the economic growth, while fa-cilitating deleveraging, curbingbubbles and preventing risks, ac-

cordingto aquarterly monetarypol-icy implementation report re-leased late Friday in Beijing. Thecentral bank will relax the restric-tions on the market access of for-eign financial institutions, thePBOC said.

Separately Friday, the PBOC andother regulators published sweep-ing draft rules for asset-manage-ment products, the latest officialstep to curb risks in the financialsystem. “We shall strike a balancebetween keeping liquidity basical-ly stable and reducing the lever-age,” the PBOC said in a report.

The central bank stressed the im-portance of macro-prudential mea-sures, saying that a framework sole-ly relying on targeting the consum-er price index has its drawbacks.

“A monetary policy framework isflawed if the CPI is the only an-chor,” it said. “Even when the CPIis relatively stable, asset prices andfinancial markets can fluctuatewildly.”

The report follows a tumble inChinese debt in recent days amidrising inflation and concern that of-ficials will intensify a deleveragingcampaign. PBOC Governor ZhouXiaochuan has made a series ofblunt warnings in recent weeksabout debt levels in the world’s sec-ond-largest economy.

“While reining in the total lever-age ratio, we shall prioritize reduc-ing the leverage of state-owned en-terprises, focus on tackling ‘zombiefirms’ and promote the debt-to-eq-uity swap in a market-oriented andlaw-based manner,” the PBOC saidFriday. In late October, the centralbank injected 63-day money intothe financial system for the firsttime,reassuring lenders aboutyear-end funding availability.

S&P COMP. INDEX Dec 17 PRICE MO %F=61.4 %S=67 CLOSE 2578.20OPEN INTEREST 65097CME

MINI DOW JONES Dec 17 PRICE MO %F=48.1 %S=56.4 CLOSE 233.35OPEN INTEREST 157902CBOT

10 YEAR TREASURY Dec 17 PRICE MO %F=30.9 %S=43.5 CLOSE 124-29OPEN INTEREST 3275498CBOT

BRITISH POUND Dec 17 PRICE MO %F=49.4 %S=43.6 CLOSE 1.3228OPEN INTEREST 169806IMM

JAPANESE YEN Dec 17 PRICE MO %F=77.5 %S=66.1 CLOSE 0.8928OPEN INTEREST 266687 in 100thIMM

EURO Dec 17 PRICE MO %F=63.9 %S=50.1 CLOSE 1.1815OPEN INTEREST 457739CME

MINI NASDAQ 100 Dec 17 PRICE MO %F=81.6 %S=84 CLOSE 6341.00OPEN INTEREST 292214CME

US TREASURY BONDS Dec 17 PRICE MO %F=68.3 %S=68.8 CLOSE 153-25OPEN INTEREST 756277CBOT

US DOLLAR INDEX Dec 17 PRICE MO %F=30.9 %S=44.4 CLOSE 93.57OPEN INTEREST 39766ICE

MEXICAN PESO Dec 17 PRICE MO %F=67.3 %S=56.6 CLOSE 0.5258OPEN INTEREST 178562 in 10thIMM

SWISS FRANC Dec 17 PRICE MO %F=62.5 %S=51.2 CLOSE 1.0134OPEN INTEREST 82691IMM

EURODOLLARS Dec 17 PRICE MO %F=11 %S=14.2 CLOSE 98.46OPEN INTEREST 1678030IMM

COCOA Mar 18 PRICE MO %F=59.7 %S=66.4 CLOSE 2131.0OPEN INTEREST 137756ICE

GAS BLEND Jan 18 PRICE MO %F=51.8 %S=66.2 CLOSE 1.7442OPEN INTEREST 170798NYM

WHEAT Mar 18 PRICE MO %F=42.5 %S=40.2 CLOSE 4.43½OPEN INTEREST 233128CBOT

SOYBEAN OIL Jan 18 PRICE MO %F=34.2 %S=42.5 CLOSE 34.59OPEN INTEREST 131347CBOT

LUMBER Jan 18 PRICE MO %F=50.7 %S=68.1 CLOSE 439.70OPEN INTEREST 5668CME

CANADIAN DOLLAR Dec 17 PRICE MO %F=63.2 %S=61.4 CLOSE 0.7837OPEN INTEREST 135330IMM

ORANGE JUICE Jan 18 PRICE MO %F=77.6 %S=75.8 CLOSE 166.80OPEN INTEREST 7408ICE

COTTON 2 Mar 18 PRICE MO %F=68.6 %S=66.6 CLOSE 69.35OPEN INTEREST 144080ICE

SOYBEAN MEAL Jan 18 PRICE MO %F=31.5 %S=22.2 CLOSE 320.00OPEN INTEREST 116979CBOT

PLATINUM Jan 18 PRICE MO %F=75.5 %S=69.4 CLOSE 954.60OPEN INTEREST 69396NYM

NIKKEI 225 AVGS. Dec 17 PRICE MO %F=40.8 %S=50.7 CLOSE 22595OPEN INTEREST 41586CME

5 YEAR TREASURY Dec 17 PRICE MO %F=16.5 %S=34.8 CLOSE 116-30OPEN INTEREST 3210630CBOT

Gung-Ho On Venezuela?These Bondholders Aren’t

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Money RatesPrime Rate: .................................. 4.00

Base interest rate charged by major U.S.commercial banks on loans to corpora-tions.

Discount Rate:Primary ................................................... 1.75

Secondary ............................................. 2.00

Rate charged by Federal Reserve Systemon loans to depository institutions

Broker Call Loan Rate: ................ 2.50Rate charged on short-term loans tobrokerage dealers backed by securities.

Federal Funds Effective Rate: ....... 1.16Rates on overnight loans amongfinancial institutions.

Certificates of Deposit:1 month ............................................. 0.NA3 months ........................................... 0.286 months ........................................... 0.45

1 year ................................................. 0.80Interest rate paid by dealers for certifi-cates of deposit based on the duration ofthe security.

Jumbo CDs:1 month ............................................. 0.163 months ........................................... 0.326 months ........................................... 0.501 year ................................................. 0.81

London Interbank Offered Rate:3 months ............................................ 1.386 months ............................................ 1.57

1 year ................................................. 1.84The average of rates paid on dollardeposits.

Treasury Bill Auction Results:3-months (as of Nov. 13) ................ 1.246-months (as of Nov. 13) ................ 1.36

Average discount rate for Treasury billsin minimum units on $10,000.

Treasury Bill:1-year, (as of Nov. 13) ..................... 1.49

Annualized rate on weekly average basis,yield adjusted for constant maturity.

INVESTOR'S BUSINESS DAILY FUTURES & BONDS WEEK OF NOVEMBER 20, 2017 B17