China’s Xi has precious opportunity to clean up 4 Dec 2020 From property to cars to chips, President Xi Jinping is pushing new rules to defuse risks and reallocate capital. It echoes his forceful effort to deleverage the economy in 2017. With world leaders distracted by the pandemic, Xi can endure more disruption this time around.
Blackstone upends bond history with Ancestry.com 3 Dec 2020 The genealogy provider is disenfranchising large creditors in a $1.2 bln debt deal helping to fund the private equity shop’s buyout. Bondholders could push back in the future, but they can’t afford to sit out in a liquidity-drenched market. Issuers will keep their upper hand.
Corona Capital: Chevron, Boeing, OPEC, Orange 3 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Chevron cuts spending, prudently; Boeing orders are a solid step; OPEC makes up its mind; and Orange’s Belgian deal has some juice.
Corona Capital: Merck sells Moderna stake 2 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: The U.S. drugmaker is banking its winnings on an investment in Covid-19 vaccine producer Moderna that dates back to 2015.
Corona Capital: Bitcoin, Lonely Planet 1 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Bitcoin hit a record, buoyed by inflationary fears, new fans and plain old speculation. Meanwhile Lonely Planet has found a new owner, as it wrestles with an anything-but-lonely market for travel information.
Corona Capital: Skis, Italian banks, Dividends 26 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Europe’s hopes for a common ski policy hit a mogul; Italian lender Credito Valtellinese faces a lonely bidding war; Aviva’s payout cut is less stingy than it looks.
Cineworld debt horror show points to gory finale 20 Nov 2020 The world’s second-largest cinema chain wants to cut rents at its UK venues, the FT says. That would barely dent borrowings of $8 bln. Even if lockdowns end and viewers return, CEO Mooky Greidinger may need shareholders to inject as much as $2 bln, or risk lenders taking control.
Revlon may take shareholder rights full circle 18 Nov 2020 The cosmetics company controlled by Ron Perelman became a case study on shareholder value maximization following a 1980s lawsuit. Last week it narrowly avoided bankruptcy. Its business and stock price have been sliding for several years. A sale looks like the best final chapter.
Corona Capital: GM earnings, Third-quarter readout 5 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: General Motors swerves around Covid-19 potholes; and U.S. companies look to have emerged from a difficult three months in better shape than expected.
Pandemic complicates AB InBev’s debt rehab 29 Oct 2020 The $93 billion brewer canned its interim dividend but its ideal leverage of 2 times EBITDA remains out of reach. CEO Carlos Brito is expected to step down soon, his successor will need cash to invest in brands hit by Covid-19. Selling another chunk of the Asian unit would help.
GE boss reaches milestone in Sisyphean trial 28 Oct 2020 Larry Culp managed to offset damage from grounded planes and declining power-sector demand with helpfully timed payments to report positive cash flow in the third quarter. Other challenges remain, from debt to GE’s insurance business. Then there’s the existential part.
China Evergrande starts running low on options 14 Oct 2020 The property developer lost a fifth of its market value after a discounted stock sale raised only half the targeted $1.1 bln. Creditors also just cut the highly indebted company some slack. Boss Hui Ka Yan may be forced to accelerate asset sales to raise the capital he needs.
UK’s $34 bln virus loss is not as bad as it seems 7 Oct 2020 Bankruptcies and fraud mean taxpayers may take a big hit on a small-firm loans scheme, a spending watchdog said. But estimates vary, and the cost of inaction could have been higher. Crucially, finance minister Rishi Sunak can boost recoveries by eschewing post-crisis austerity.
Evergrande’s debt scares creditors into submission 7 Oct 2020 The stressed property giant persuaded investors owed nearly $15 bln to convert their obligations to unlisted shares. Details are scant, but it’s another miraculous escape for founder Hui Ka Yan. The deal looks crummy, and it highlights how real estate has trapped policymakers.
Corona Capital: NYC 30 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: New York City’s economic reboot comes up against a new outbreak.
Corona Capital: U.S. debt, Junk bonds, Vaccines 3 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. debt rises to levels not seen since World War Two; this year’s returns on high-yield debt turn positive despite the coronavirus; and Donald Trump’s hope of a vaccine by Nov. 1 is dangerously political.
Fed policy review will leave market put untouched 26 Aug 2020 Chair Jay Powell’s every utterance is being scoured for hints of whether a new framework will introduce innovations like average-inflation targeting. But one thing won’t change. Rate setters will backstop markets, as they have done for a decade, and investors are counting on it.
Corona Capital: Nvidia, Air conditioners 20 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: Nvidia goes gangbusters, HVAC units have their moment in the sun.
S&P checks in for long stay at Hotel Covid Gloom 19 Aug 2020 The rating agency cut the debt rating of Accor to junk. S&P puts more weight on its forecast of a slow post-pandemic recovery than on the French hotel group’s relatively strong balance sheet and encouraging recent trends. Such a cautious approach comes with its own risks.
Corona Capital: Vroom, Estonia WFH, Johnny Rockets 13 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: How Vroom can power through the pandemic; Estonia tries to lure those with wanderlust; Casual dining puts on the Covid-19.