Barrick Gold Corp. has a road map to avoid following other miners into junk credit-rating status as the largest bullion producer extends cost-cutting, partnerships and asset sales, said President Kelvin Dushnisky.
MUMBAI: Stop loss has been a popular term in stock markets, a sell order that protects profits and limits losses when markets turn against an investor's position. That's gaining ground in the bond market of late. It could accelerate if foreign funds press the button fearing capital loss. Thanks to the unanticipated spike in yields when everyone from the regulator to the government were assuring Indian macro economy is in fine fettle that volatility is spreading to fixed income markets from equities.
It’s been a flurry of international financing activity for the Canadian banks since Ottawa changed the framework on what collateral could be included in covered bond issues two years back.
Those rules, when combined with the accompanying regulations that were brought into effect in late 2012, mean issuers aren’t allowed to include CMHC-insured residential mortgages as backing for a so-called Canadian legislative covered bond.
While Moody's slipped over 20% when the DoJ announced its cajillion dollar lawsuit against S&P for knowing the crisis was coming but not telling anyone, it later bounced back over 10% as investors believed the non-US-downgrading rating agency (that happened to be owned by Buffett) was too-big-to-jail.
With its record public equity offering in September out of the way, Alibaba Group Holding Ltd (BABA) has shifted its focus to the debt market. The Chinese e-commerce retailer company is preparing to notch up another milestone – Asia’s biggest bond sale – in the hope of raising as much as $8 billion.
Pretty much everyone agrees that we have a ratings agency problem. But I think the conventional way of describing it as a “conflict of interest” that’s created by the fact that “banks pay them to rate their securities” leaves some crucial steps out.