Bond buyers love the commodity producers they once hated


TORONTO: Investors are piling back into riskier commodity companies amid signs that the sector rout is firmly in the rear-view mirror.

First Quantum Minerals Ltd increased the size and lowered the cost on a portion of its high-yield bond deal this week as oil hovers back above US$60 a barrel and metals trade near multi-year highs. Glencore Plc reported record profit – and a surprise dividend payout, which debt investors won’t like – the latest in a turnaround that saw the firm embark on an aggressive debt-cutting plan in 2015 to avoid a downgrade to junk.

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