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(Bloomberg) Pemex swung to a profit in the fourth quarter as government support appeared to relieve pressure on the state-owned company saddled with a $106 billion debt burden.Most Read from BloombergApple Cancels Work on Electric Car, Ending Decadelong EffortA Spike in Heart Disease Deaths Since Covid Is Puzzling ScientistsOffice Tower Deal for $1 Reveals Anxiety Among Longtime BuyersNigeria Delivers Jumbo Rate Hike to Aid Its Battered NairaBYD’s New $233,450 EV Supercar to Rival Ferrari, La
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.
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.
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.
Popular Searches
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.