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.

Article type: metered
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Business , bonds


Next In Business News

CPO futures likely to trade lower next week Premium
China's industrial profits growth accelerates in Oct Premium
New COVID variant Omicron triggers global alarm, market sell-off Premium
Top US diplomat for Asia to visit Malaysia and three other ASEAN countries Premium
Oil settles down US$10/bbl in largest daily drop since April 2020 Premium
Black Friday draws US shoppers but many shun stores for online Premium
Stocks tumble on new coronavirus variant fear Premium
China traders ramp up leverage in bet PBoC to stay on sidelines Premium
Indonesia jobs law ruling may dim investment outlook Premium
Investing in a tough 2022 Premium

Others Also Read