Comments on: Petrobono 2011 operetta ends with a sleight of hand and a twist

By: Tori

Tori — Mon, 08 Aug 2011 21:53:54 +0000

I’m really into it, thknas for this great stuff!

By: torres

torres — Wed, 08 Jul 2009 22:10:51 +0000

Number of oil rigs at 5yr low:

http://www.bloomberg.com/apps/news?pid=20601072&sid=ahytkAQjpF6o

By: Fausta’s Blog » Blog Archive » The Carnival of Latin America and the Caribbean

Wed, 08 Jul 2009 19:30:26 +0000

[...] Petrobono 2011 operetta ends with a sleight of hand and a twist [...]

By: Raimundo Andueza

Raimundo Andueza — Tue, 07 Jul 2009 16:58:00 +0000

Ojo Pelao, the “when and if” market is subject to documentation. If the documentation is lousy or the issuer takes very long to register the notes with Euroclear/Cleartream, then potential buyers can withdraw their offers from the when and if. On the other hand, an interesting feature of these notes is that the Issuer’s failure to pay them at matutity will trigger the Issuer’s other bond’s cross-default/cross acceleration provision. No covenants, no Eods, but failure to pay.

By: Miguel Octavio

Miguel Octavio — Tue, 07 Jul 2009 14:41:56 +0000

The “when and if” market, when and if PDVSA registers it, is around 65% (63%-66%) which is a yield to maturity of 26% and a swap rate of Bs. 5.9 at the low end, but remember 175 was the low price, others bid higher. Last Thursday, the “when and if” was at 58% and you could buy dollars in the swap market at Bs. 6.3, which was the same as buying the Petrobono at 175.

By: Alex Dalmady

Alex Dalmady — Tue, 07 Jul 2009 14:30:35 +0000

Miguel, we’re not all following this THAT closely. Is there an indication of where this bond will trade?

If it trades around 70% (to yield 20%), those who bought at 175% (at 2.15) would end up getting their lechugitas at Bs. 5.375.
Still not a bad deal, if they can flip the bond.

By: Cecilio A. Alvarez B.

Cecilio A. Alvarez B. — Tue, 07 Jul 2009 11:30:46 +0000

To be honest it does not surprise me at all.

Assuming their goal would have been really to do an effective placement of Bonds, they would have engaged the syndicate of Banks to underwrite (if there are still banks out there that dare underwrite PDVSA risk) or syndicate the deal and used the funds to expand production, R&D or whatever.

It just shows again and again that the homo(s) (sorry but the “sapiens” les queda grande) that talk about “documentologia” and “espionando” have and will have other interests at hand.

For the ones that bought it and are on the hook now facing further fall in price, well that happens when you buy or do business with crooks and said risk should have been priced into the Bond they bought. So no complaining, sarna con gusto no pica…

By: Roger

Roger — Tue, 07 Jul 2009 03:59:28 +0000

Imagine if all those who were lucky enough to buy those bonds got a letter from PdVSA…. Dear Investor: Welcome to the PdVSA famalia and now as a prefered PdVSA investor you can get the best insider trading deals in all of Latin America and all tax free because its deposited in an offshore bank nobody ever heard of. Plus first refusal on great deals like Argentine Banana and Coffee futures so secret that few outside the new PdVsa even know about them!…..
Do you have any idea what a list of these suckers is worth?