The political transition in Venezuela triggered a sharp uptick in local sovereign bonds, but here's what caught traders' attention: the already tight market for distressed emerging-market debt just became even more constrained. With fewer truly beaten-down assets available, investors hunting for deep-value opportunities in EM debt are finding the pickings slimmer than ever. The rally itself signaled shifting sentiment around the country's creditworthiness, yet it paradoxically shrinks the pool of oversold names that typically attract opportunistic capital seeking outsized returns in the emerging-market space.