Demonstrators gathered outside the National Assembly in Caracas, holding a large Venezuelan flag as Vice President Delcy Rodriguez was officially sworn in as the interim president of Venezuela. This development came on the same day that Nicolas Maduro, the ousted president, appeared in a New York court, marking a significant power shift orchestrated by the Trump administration on January 5, 2026.
In financial markets, the value of Venezuela's benchmark notes, due in October 2026, has experienced a remarkable surge, with prices reaching approximately 43 cents on the dollarāmore than double the value seen in August. This rally reflects traders' reassessment of recovery prospects for the nationās distressed securities after Maduro's unexpected removal and a strategic policy shift by the U.S. that hints at the possibility of restructuring Venezuela's debt.
Investors are increasingly optimistic, anticipating that a swifter political transition coupled with a more defined path to asset recovery could unlock asset value that has remained stagnant for almost a decade. Venezuela went into default in late 2017, unable to meet payment obligations on foreign bonds issued by both the government and PDVSA, its state-owned oil company. Reports indicate that significant holdings of these defaulted bonds are owned by Fidelity Investments and T. Rowe Price.
Donato Guarino, an emerging-market strategist at Citi, pointed out that uncertainties persist, particularly regarding the new government's political stance towards Washington. "To the Trump administration, it's crucial to capitalize on Venezuela's oil reserves, which could boost the country's GDP and enhance its capacity to repay bondholders," Guarino stated in an interview with CNBC. "However, short-term risks may emerge, as Trump's move is a significant gamble, raising doubts about the new president's allegiance to Trump."
In recent statements, Trump has declared the U.S. would take charge of Venezuela, issued warnings to Colombia and Cuba, and reiterated his intention to acquire Greenland. These remarks follow a weekend military operation that led to Maduro's capture in Caracas and his subsequent transport to the U.S. to confront criminal accusations, executed without prior congressional approval.