JPMorgan Chase & Co. and Bank of America strategists are recommending clients buy Venezuelan global bonds with substantial unpaid interest, betting these distressed securities could outperform before any potential debt restructuring. The banks see opportunity in Venezuela's sovereign debt, which carries large arrears that could be restructured favorably for bondholders. JPMorgan and BofA believe the market has overreacted to Venezuela's economic troubles.

Venezuela's bonds have become attractive to some investors despite the country's ongoing political and economic crisis. The bonds in question have accumulated significant unpaid interest, creating what strategists view as potential upside if the government restructures its debt. This approach reflects a contrarian view that Venezuela's financial distress may present buying opportunities rather than just risks. The recommendation comes as Venezuela continues to struggle with hyperinflation and economic sanctions.

This investment thesis hinges on the possibility that Venezuela will eventually restructure its debt, potentially rewarding investors who bought during the crisis. The strategists' call represents a calculated bet that the country's bonds, despite current delinquency, hold value for patient investors. Their analysis suggests that the accumulated interest could translate into gains if restructuring occurs under favorable terms for bondholders.