Greensill drops libel suit against Reuters over bond story


LONDON (Reuters) – Greensill Capital said it has dropped a libel suit against Reuters over a story which said that the financing group had provided a false statement to market participants in 2018.

A logo of Thomson Reuters is pictured on a truck during preparations for the annual meeting of the World Economic Forum (WEF), in Davos, Switzerland January 19, 2020. REUTERS/Denis Balibouse

The statement related to bonds it had issued the prior year on behalf of commodities tycoon Sanjeev Gupta.

Greensill said in the May 2018 statement that the Scottish government had approved a guarantee related to a hydro

Read More

Why bond investors are willing to bet on money-losing Pemex after oil price crash


MEXICO CITY/NEW YORK (Reuters) – Mexico’s state-owned oil company Petroleos Mexicanos has seen investor sentiment improve in recent weeks despite sky-high debts, a slump in demand and no clear direction about how the government will turn the money-losing driller around.

FILE PHOTO: Tanker trucks of Mexico state oil firm Pemex’s are seen at Cadereyta refinery in Cadereyta, on the outskirts of Monterrey, Mexico January 23, 2019. REUTERS/Daniel Becerril

Despite all the risks of holding the world’s largest fallen angel, the ignominious distinction for a company that loses its investment-grade rating, bondholders are betting on continued support from the government.


Read More

China central bank should shun risky bond buying as economy improves: adviser


FILE PHOTO: The headquarters of the People’s Bank of China, the central bank, is pictured in Beijing, China, as the country is hit by an outbreak of the new coronavirus, February 3, 2020. REUTERS/Jason Lee

BEIJING (Reuters) – The People’s Bank of China should avoid buying special treasury bonds as such a move could fuel inflation risks and asset bubbles and lead to depreciation of the yuan currency, central bank policy adviser Ma Jun said in remarks published on Sunday.

China’s leaders have pledged to take more steps to support the virus-ravaged economy, prompting a heated debate among economists and

Read More

The Fed is starting up its program to purchase corporate bond ETFs


The New York Federal Reserve building in New York.

Scott Eells | Bloomberg | Getty Images

The Federal Reserve will be starting its long-awaited corporate bond program Tuesday amid a boom in debt issuance.

The central bank will kick off its Secondary Market Corporate Credit Facility, which is the part of a history-making initiative that will be purchasing exchange-traded funds that track that part of the debt market. Asset management giant BlackRock will be running the operation.

In particular, the facility will buy up ETFs that hold so-called fallen angel bonds of companies that formerly had been classified as investment

Read More