MasterFeeds: Another Puzzling Bond Issue, this time by PDVSA « The Devil’s Excrement

Subscribe in a reader Add to Google Reader or Homepage

Feb 11, 2011

Another Puzzling Bond Issue, this time by PDVSA « The Devil’s Excrement

Economic mismanagement at its best.... and they say they're socialists....!!!! Looks more like greedy "neo-liberal capitalists"!!!


Another Puzzling Bond Issue, this time by PDVSA « The Devil’s Excrement:

Once again, Venezuela, this time via its oil company PDVSA, gets ready to issue a bond which puzzles markets. As investors were asking for more transparency, more order and fewer surprises in the country’s issuance, PDVSA did exactly the opposite, announcing the sale of a US$ 3 billion issue to be sold via the banking system and with identical characteristics to the Venezuela Global 2022 bond issued by the Republic last August.

There are many puzzles:

-Why make it identical to the existing sovereign bond?

-Why pay a coupon of 12.75% when it would have sold equally well at a lower coupon? In fact, the Global 2022 was issued at a time last August that the yield curve was much higher than it is today.

-Why issue something so unexpected, after sending different signals to investors that are asking for more clarity?



Share
-- The MasterFeeds

No comments:

Post a Comment

___________________________________
Commented on The MasterFeeds

ShareThis


The MasterFeeds

MasterSearch

Categories

MasterFeeds News Finance china money stocks USA Commodities United States debt Gold Venezuela Dollars bonds Markets economics trading Banks FED Hedge funds Asia LatAm Oil default credit metals Mining international relations central_banks CapitalMarkets HFT russia zerohedge Euro Israel Silver democracy India Japan SEC bailout Africa Liberalism Middle East elections insider trading Agriculture Europe FX Iran Tech Trade VC bitcoin copper corruption Brazil CoronaVirus ForEx Gold Silver NYSE WeWork chavez food real estate Arabs EU Facebook France IPO Maduro SWF TARP UN canada goldman government recession revolution war Abu Dhabi Cannabis Capitalism Citigroup Democrats EIA Jobs NASDAQ PDVSA Palestinians Saudi Arabia Softbank Stats Trump Turkey Ukraine demographics ponzi socialism 13F AIG Berkshire Hathaway CBO Cargill Colombia Cryptocurrency ETF Ecuador Emerging Markets Eton Park Google Hamas Hezbollah Housing IMF LME Lebanon Mindich Mongolia NYC OPEC PIIGS Pakistan Paulson Pensions Peru Potash QE Scams Singapore Spain Syria UK Yuan blockchain companies crash cybersecurity data freedom humor islam kleptocracy nuclear propaganda social networks startups terrorism Advertising Airlines Andorra Angola Anti-Israel Apple Automobiles BAC BHP Blackstone COMEX Caracas Coal Communism Crypto DRC DSK Double-Dip EOS Egypt FT Fannie Mae Form Foxconn Freddie GM Gbagbo History ICO Iraq Italy Ivanhoe Ivory Coast JPM Juan Guaido Lava Jato Libya London M+A MasterEnergy Mc Donald's Miami Mugabe Norway Norwegian Odebrecht Oyo PA PPT Palantir Panama Politics QE2 Republicans Rio Ron Paul ShengNu Soleimani South Africa Tokens Tunisia UN Watch UNESCO UNHRC Uber VW Wyclef anti-semitism apparel bang dae-ho cash censorship chile clothing coffee cotton derivatives emplyment foreclosures frontrunning haiti infrastructure labor levi's mortgages philosophy shipping social media treasury women