Petrobras “Century” Bond Prices Collapse As ‘June Plan’ Already “Obsolete”

Jon Alternative Media, Blogosphere, Economy, Energy, Market Commentary

Remember June – when everything was (apparently) awesome in BRIC-land and somehow a large group of duration-seeking greater-fools used Other-People’s-Money to buy Petrobras bonds that mature in 100 years! Well those bonds are now trading less than 70c on the dollar (with yields pushing 10%) as Brazil’s state-run oil company Petrobras, which slashed its five-year spending plan by 40% in June, admits that plan is already obsolete (two company sources told Reuters on Thursday). Petrobras will likely cut back further as growing debt costs, falling oil prices and a weak currency are the perfect storm for the company.
Still “money good”? Only another 99.75 yearsd to hold them on your balance sheet to find out…

This post was published at Zero Hedge on 09/11/2015.