tybs
Aramco sells $12 billion bonds out of record $100 billion demand
DUBAI (Reuters) - Saudi Aramco is set to raise $12 billion with its first international bond issue after receiving more than $100 billion in orders, a record breaking vote of market confidence for the oil giant which has faced investor concerns about government influence over the company.
State-owned Aramco’s bond issue, split into maturities ranging from three to 30 years, is seen as a gauge of potential investor interest in the Saudi company’s eventual initial public offering.
Before the bond deal was marketed on Monday, Saudi Energy Minister Khalid al-Falih said initial indications of interest for the paper were over $30 billion.
Having swelled to over $100 billion during the sale process, demand appeared to be the largest ever for emerging markets bonds, fund managers said, surpassing orderbook value of more than $52 billion for Qatar’s $12 billion deal last year, $67 billion for Saudi Arabia’s inaugural issue in 2016 and $69 billion orders for Argentina’s $16.5 billion trade that year.
Such strong interest was also the latest sign that international investors are pouring money back into Saudi Arabia, as the kingdom tries to move on from the murder of Saudi journalist Jamal Khashoggi after his killing at the hands of Saudi agents in October strained ties with Western allies.
“Purely on figures, it is a fantastic credit,” said Damien Buchet, CIO of the EM Total Return Strategy, Finisterre Capital.
But he added: “The thing is, they are part of Saudi Arabia, they are a government arm. For equity investors this is always going to be an issue, more so than for bond investors.”
The Aramco issue has attracted interest from a wide range of investors, as the oil producer’s vast profits would put its debt rating - if unconstrained by its sovereign links - in the same league as independent oil majors like Exxon Mobil and Shell.
https://www.reuters.com/article/us-aramco-bond-demand/aramco-sells-12-billion-bonds-out-of-record-100-billion-demand-idUSKCN1RL0NF
(sold$2b moar than original est of $10b-what's a few gorillion among 'friends')
adjusting reserves by same amount taken out. Nope..nothing to see there.
$170b and he can't do better?
IMF says global economy cooling, coordinated stimulus may be needed
WASHINGTON (Reuters) - The global economy is slowing more than expected and a sharp downturn could require world leaders to coordinate stimulus measures, the International Monetary Fund said on Tuesday as it cut its forecast for world economic growth this year.
The global lender’s semi-annual World Economic Report pointed to the U.S.-China trade war and a potentially disorderly British exit from the European Union as key risks and warned that chances of further cuts to the outlook were high.
Some major economies, including China and Germany, might need to take short-term actions, the IMF said.
“This is a delicate moment for the global economy,” IMF chief economist Gita Gopinath said in a news conference to discuss the report.
Governments may need to open their pocketbooks at the same time “across economies” if the slowdown becomes more serious, Gopinath said, adding that loose monetary policy might also be needed.
https://www.reuters.com/article/us-imf-worldbank-outlook/imf-says-global-economy-cooling-coordinated-stimulus-may-be-needed-idUSKCN1RL1J4
all under the fear porn bullshit they are known for.
and fuck you very much too
Directs Soar In Subpar, Tailing 3-Year Auction
With another flurry of bond auctions on deck this week, among them tomorrow's benchmark 10Y, moments ago the Treasury sold $38BN in 3Y paper in what was at best a subpar bond sale, and certainly a far cry from today's blockbuster $100BN bond sales by Saudi Aramco.
Pricing for the 3Y auction came at 2.301%, a 0.2bps tail to the 2.299% When Issued, and the 12th tailing auction in the past 13. This was the lowest yield on 3Y paper since February 2018, and well below the 2.4480% in March.
The Bid to Cover of 2.49 was slightly below the 2.56 in March, and below the 2.54 six auction average.
The internals were surprising: while Indirects were also in line, if on the low end, coming in at 42.7%, below the 49.5% in March and below the 6 auction average, it was Directs that were notable, as the Direct takedown doubled from 9.4% to 18.7%, the highest since September 2014. It was not immediately clear what prompted this latest surge in the Direct bid. Finally, Dealers took down 38.6%, also below the March total of 41.1% and the recent auction average of 41.3
Overall, a relatively disappointing auction which may be the result of both the drop in yields today, the recent depletion of the short base, and the anticipation for "Super Wednesday's" CPI report which may lead to a notable repricing of the yield curve.
https://www.zerohedge.com/news/2019-04-09/directs-soar-subpar-tailing-3-year-auction
all about trying to protect the stock or circumnavigate the insider trading rules.