PERU: Petroperu Arrears Putting Domestic Oil Production at Risk
Dec-03 13:36
- Gestion reports that several companies with contracts to drill oil fields in Peru have warned that the continuity of their operations is at risk given Petroperu’s failure to make payments for their oil production. In a letter addressed to President Jeri, the companies said that Petroperu has accumulated a debt exceeding $120mn to them, which they said seriously affects their financial sustainability. The news comes as domestic oil and natural gas production continued to fall last month.
- In other news, President Jeri said that he had held a call with Ecuador President Noboa, prior to their meeting at the Peru-Ecuador Binational Cabinet which will take place on Dec 12. The agenda for this meeting is said to include talks on security, border development, and cooperation between the two nations.
- In terms of the macro calendar, focus turns to next week’s BCRP MPC meeting, where a further rate hold at 4.25% is expected by a slight majority of analysts, according to the latest Bloomberg survey. The economy is continuing to grow around its potential rate, while the policy rate is already very close to a neutral level, reducing the need for an adjustment at this juncture.
- However, further benign CPI inflation data earlier this week keeps the door open to another cut in the coming meetings, and risks are still skewed towards a possible 25bp reduction on Dec 11.
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PIPELINE: Corporate Bond Update: Novartis Capital 7Pt Adding Pressure to Tsys
Nov-03 13:34
Adding Novartis 7Pt issuance with prior for comparison:
- Date $MM Issuer (Priced *, Launch #)
- 11/03 $Benchmark Alphabet 8-pt jumbo**: 3Y +60a, 3Y SOFR, +5Y +70a, 7Y +80a, 10Y +90a, 20Y +100a, 30Y +110a, 50Y +135a (massive debt issuance includes $6.5B over 6 tranches: 3Y, 6Y, 7Y, 13Y, 19Y and 39Y).
11/03 $1B Neptune Bidco 5.5NC2 - 11/03 $Benchmark Novartis Capital 7Pt**: 3Y +55a, 3Y SOFR, 5Y +70a, 7Y +75a, 10Y +80a, 20Y +80a, 30Y +90a
- 11/03 $Benchmark UBS 8NC7 +120a, 21.5NC20.5 +115a
- 11/03 $Benchmark Peoples Republic of China 3Y, 5Y
- 11/03 $Benchmark Qatar 3Y +45a, 10Y Sukuk +55a
- 11/03 $Benchmark Kingdom of Jordan 7Y investor calls
- **Piror Alphabet issuance for comparison: $5B on April 28 of this year ($750M 5Y +32, $1.25B 10Y +47, $1.5B 30Y +62, $1.5B 40Y +70) a long stretch since issuing $10B on Aug 3 2020 ($1B 5Y +25, $1B 7Y +45, $2.25B 10Y +58, $1.25B 20Y +73, $2.5B 30Y +88 and $2B 40Y +108)
- **Prior Novartis issuance for comparison: $3.7B on September 16, 2024 ($1B 5Y +45, $850M 7Y +57, $1.1B 10Y +67, $750M 30Y +77)
EURIBOR OPTIONS: Put Condor buyer
Nov-03 13:29
0RH6 97.87/97.75/97.68/97.56p condor, bought for 2.5 in 4k.
GLOBAL POLITICAL RISK: Week Ahead 3-9 November
Nov-03 13:27
Download Full Report Here
Monday 3 November:
- France: Debate in the National Assembly resumes on the 2026 state budget and social security budget. With thousands of amendments needing to be discussed and voted on, the Tuesday deadline for voting on the revenue part of the state budget is at risk of being missed. If this is the case, the debate on the revenue section will be paused until 13 November, raising the prospect of the entire budget failing to be passed before Christmas (the final deadline that would allow the Constitutional Court to review the legislation before being sent to President Emmanuel Macron’s desk for final sign-off).
