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Dan Hinxman, Head of Fixed Income Sales EMEA, Liquidnet, said:
“All eyes are on Altice. Trouble at the top continues, with the announcement that the firm has suspended another French executive as part of its corruption probe, causing bonds to plummet. As a result, we have seen significant block activity in the past 24 hours as pressure mounts on the business and bid / offers widen – as some investors look for the exit and others looks to take advantage of the volatility.”
“The Chinese property market also continues to be a focus for fixed income traders following recent threats of default from behemoth Dalian Wanda. Attention is now on Sino Ocean Group – another large Chinese property developer – with investors questioning whether they could be next to waiver on repayments. As a result, the firm’s bond prices have tumbled, trading at 10 cents to the dollar – sounding alarm bells among investors who have been quick to offload large blocks. Desks will be keeping a close eye on the Chinese property market, as a potential flashpoint if contagion spreads.”
“In Argentina, oil company YPF’s bonds have been buoyed by plans to tap into Vaca Murta – the largest oil basin in South America – and the prospect of a general election in October. Favourable political and economic conditions, as the country looks to become a net exporter of energy, is tantalising the bond market – driving a rally as investors hunt for yield in a challenging market.”
