1st Oct 2015 05:39
LONDON (Alliance News) - Traders have started quoting prices for Glencore PLC debt in a way normally associated with lower-quality paper, or junk bonds, the Financial Times reported.
The shift seen in pricing in the private over-the-counter markets in the past week came after wild swings in the share price of the multi-commodities miner and trading house, amid investor concerns about its ability to handle its debt obligations within a tough commodities market.
Glencore currently has an investment grade rating from rating agencies, but dealers and investors this week said trading in its USD36 billion in bonds outstanding has moved to a cash basis, normally used for junk bonds which have a higher risk of default.
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By Sam Unsted; [email protected]; @SamUAtAlliance
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