Gazprom Eurobonds considered attractive for buying

"Yesterday's growth of debt rates of emerging economies was againpreconditioned by a short-term improvement of the political situation inBrazil due to an increase in support of market-oriented presidentialcandidate Jose Serra, and by new oil prices maximal in the past fifteenmonths. As for Russian bonds, the most considerable growth was registeredwith securities with a maturity date in 2030 (+0.5 percent) and the FinanceMinistry bonds of the fifth tranche (+0.56 percent). However, this increasewas rather even", an expert pointed out in an interview with RBC.Regarding corporate issuers, the specialist recommends to pay attention toGazprom Eurobonds. In the past six weeks, their yield to maturity gainedalmost 100 banking points to 10.72 percent, which corresponded to a spreadof over 740 banking points. This is 240 banking points more than RussianFederation securities with a maturity date in 2007 and a correspondingduration. Taking into account the fact that there are less than two monthsbefore the payment of the next Gazprom coupon, the current yield of whichis 30 percent per year, and the fact that the expected issue of a newtranche of the company's foreign currency bonds should activate the market,the expert recommends buying these securities..


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Author`s name Editorial Team