EM LATAM CREDIT: Petroperu: Govt Debt Guarantee - Positive
(PETRPE; B3/B/CCC+)
"The Ministry of Economy and Finance (MEF) does not rule out state guarantees for new Petroperú debt." - Canal N
Follow up to our post last week when the Economy and Finance Minister Raul Perez-Reyes announced support for the ailing government owned energy company: https://mni.marketnews.com/3TQtiCN
Now it seems the government is contemplating a guarantee of the company's debt, according to local news outlet Canal N, which they cite is USD7bn.
We calculate that could add about 3 percentage points to debt/GDP, near where it was at the time of the pandemic according to IMF data, which seems manageable.
The company was given government support last year and this year both the current and previous finance minister vowed that no more government support would be forthcoming.
Apparently that might mean no actual capital up front but given this company's history, eventually that might be what happens.
PETRPE 47s were last quoted USD66.3, up 1.7 points today, up 4 points QTD and up 2 points YTD.
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PIPELINE: Corporate Bond Update: Air Products, Amphenol Debt Launched
- Date $MM Issuer (Priced *, Launch #)
- 06/09 $1.2B Whirlpool $600M 5NCL 6.375%, $600M 8NCL 6.625%
- 06/09 $1.1B #Air Products $600M 3Y +35, $500M +7Y +65
- 06/09 $750M #Amphenol 3Y +43
- For Tuesday's schedule:
- 06/10 $Benchmark Bahamas investor calls
US TSY FUTURES: BLOCK: Sep'25 10Y Ultra Sale
- -3,500 UXYU5 112-00, sell through 112-00.5 post time bid at 1253:10ET, DV01 $309,700.
- The 10Y ultra contract trades 111-31.5 last (+8)
EURUSD TECHS: Trend Structure Remains Bullish
- RES 4: 1.1625 1.500 proj of the Feb 28 - Mar 18 - 27 price swing
- RES 3: 1.1608 High Nov 9 2021
- RES 2: 1.1573 High Apr 21 and the bull trigger
- RES 1: 1.1495 High June 05
- PRICE: 1.1420 @ 15:53 BST Jun 9
- SUP 1: 1.1340 20-day EMA
- SUP 2: 1.1216/1.1065 50-day EMA and a pivot level / Low May 12
- SUP 3: 1.1026 38.2% retracement of the Feb 3 - Apr 21 bull cycle
- SUP 4: 1.0943 Low Apr 10
EURUSD is holding on to the bulk of its recent gains. The breach of 1.1419, the May 26 high, confirmed a resumption of the trend and has opened 1.1573, the Apr 21 high and bull trigger. Moving average studies are in a bull-mode position, highlighting a dominant uptrend. Support to watch lies at 1.1216, the 50-day EMA. A clear break of this average would undermine the bull theme. Initial support is at 1.1334, the 20-day EMA.
