Commodities Featured Article Iron ore price

Fortescue bonds sink

David Llewellyn-Smith

Friday, 10 April 2015

It’s sure not looking pretty in the FMG’s bond issues. The 2019 bond is now pricing in the 70s:

And 2022 is into the high $60s:

That looks like a large deficit of assets to sell. The recent ponzi-bond walkaway looks to have been a monumental blunder.

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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.