Goldman Sachs Reaps $90 Million Payout On Venezuela Bonds

Venezuela’s cash-strapped government stopped paying its foreign debt months ago. But a unit of Goldman Sachs Group Inc. GS, +1.74%   recently received payments of tens of millions of dollars for bonds that ignited controversy last year when they were purchased at a big discount, according to people familiar with the matter.

The Venezuelan government made the payment in November, but the money had been held up by a clearing house that processes these payments over concerns that it may have been in violation of U.S. sanctions, these people said.

The purchase in May by Goldman’s asset management arm sparked charges that the New York firm was providing a financial lifeline to Venezuela’s embattled government. The public anger seemed to catch Goldman off guard, in part because the asset management arm hasn’t usually been prone to controversy.

Analysts say the $90 million payment on Friday for the bonds, which are held mostly by Goldman Sachs Asset Management, could amount to the final payment made by the government of President Nicolás Maduro —on any of its bonds.

An expanded version of this report appears at WSJ.com

Popular on WSJ.com

Theranos Lays Off Most of Its Remaining Workforce

Sprint, T-Mobile Restart Deal Talks, Once Again

RECENT NEWS

Why Low Volatility Is Not The Same As Low Risk

Why Low Volatility is Not The Same As Low Risk Some of the worst-performing portfolios in... Read more

Gyrostat May Market Outlook: When The Cost Of Protection Falls - Signals For Portfolio Positioning

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direction. It... Read more

The Risk Most Portfolios Do Not Explicitly Manage

Most portfolios are constructed on a simple and widely accepted assumption: that equity risk will be r... Read more

Gyrostat April Outlook: The Changing Cost Of Protection

Signals For Portfolio Construction This monthly Gyrostat Risk-Managed Market Outlook does not attemp... Read more

What Advisers Misunderstand About Protection

Protection is rarely rejected outright. More often, it is misunderstood. Most advisers recognise th... Read more

Gyrostat Market Outlook: Looking Beyond The 30-day Volatility Headlines

This outlook examines how financial markets are pricing risk rather than attempting to forecast market... Read more