Fortescue pulls ponzi-bond

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Fortescue Metals is rumoured to have pulled its $US2.5 billion secured bond issue, for which it was set to pay a rate of 8 per cent or above to lure investors.

A price range of 8 to 8.25 per cent was reported by IFR – above the “high 7 per cent area” range Fortescue’s bankers – JPMorgan and Credit Suisse – were targeting when the deal launched.

Should have taken it.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.