Glad you snapped up that FMG ponzi bond?

From Bloomie:

Investors who bought $2.3 billion of iron miner Fortescue Metals Group Ltd.’s 9.75 percent securities in April have lost $255 million of market value in less than a month…Fortescue’s bonds traded at 96 cents on the dollar to yield 10.6 percent at 12:27 p.m. in New York after peaking at 107.1 cents on June 12. It was the first day the bonds, which mature in March 2022, fell under their issue price of 97.6 cents. The securities are the most-traded bonds

You can expect more pain. Here’s the 2022 bond yesterday:

And 2019 maturity:

Something in this for prospective Atlas adventurers.

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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.