Pimco, Emso Detect Default Risk Mispricing in Pemex’s Bonds
Bloomberg 2/19/2021 Justin Villamil and Amy Stillman
(Bloomberg) In financial markets awash with so much cash that junk bonds can yield less than 2%, the state-owned oil giant Petroleos Mexicanos is a jarring outlier.
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At 5.4%, the yield on the company’s benchmark bonds is not only well above that of similarly rated debt, it’s also almost four percentage points higher than the rate investors demand to buy Mexican government bonds. That gap known as the sovereign to quasi-sovereign spread is the biggest of its kind in the world, and the message it sends is crystal-clear: Pemex’s financial woes are so severe that investors have serious doubts about whether the government will bail it out when needed.
KUALA LUMPUR, Feb 11 Malaysia’s gross domestic product (GDP) growth for 2020 is better than expected and the country’s economy has shown various signs of recovery, said Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz. Malaysia’s GDP contracted 3.4 per cent in the fourth.
Malaysia’s gross domestic product (GDP) growth for 2020 is better than expected and the country's economy has shown various signs of recovery, said Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
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The Mohegan Tribal Gaming Authority has had its corporate family rating for debt raised to ‘Caa1’ with a ‘stable’ outlook, from ‘Caa2’, by Moody’s Investors Service Inc. The Mohegan Tribal Gaming Authority controls United States-based tribal casino operator Mohegan Gaming and Entertainment, a group with investment in Asia.
The ratings institution also improved the authority’s ‘probability of default’ rating to ‘Caa1-PD’ from ‘Caa2-PD’.
According to Moody’s, obligations rated ‘Caa’ are “judged to be speculative of poor standing and are subject to very high credit risk”.
Moody’s states that corporate family ratings classified as ‘Caa-PD’, are “judged to be speculative of poor standing subject to very high default risk, and may be in default on some but not all of their long-term debt obligations”.