Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Brazil's Samarco lifts Yankee high-yield default rate to 6-year high-Fitch

Published 11/11/2016, 06:10 am
Updated 11/11/2016, 06:20 am
© Reuters.  Brazil's Samarco lifts Yankee high-yield default rate to 6-year high-Fitch
BHP
-
BHPB
-
BK
-
VALE
-

SAO PAULO, Nov 10 (Reuters) - An index tracking high yield bond defaults jumped the most in more than six years after Brazilian miner Samarco Mineração SA SAMNE.UL missed an interest payment on its U.S. dollar bonds, according to a Fitch Ratings report Thursday.

The Yankee index, which measures the high yield bond default rate over the past 12 months, finished October at 6.2 percent, its highest level since February 2010, Fitch said.

The Yankee universe covers about 15 percent of the U.S. high yield market, giving credit events such as bankruptcy filings, distressed debt exchanges and missed interest payments "an outsized impact on its default rate," according to Fitch.

The overall reading for U.S. high yield defaults rate rose to 4.9 percent in October, the rating agency added.

Samarco, a 50-50 joint venture between Brazil's Vale SA VALE5.SA and Australia's BHP Billiton (LON:BLT) Ltd BHP.AX , suspended operations in November following a dam disaster. It has $2.2 billion in outstanding bond obligations.

Reuters reported on Sept. 26 that Samarco missed an interest payment on a $500 million bond, according to trustee Bank of New York Mellon (NYSE:BK) Corp. The company said on Oct. 24 that it missed another $20 million interest payment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.