MARKET SIGNALS 17.03.2020

INVESTMENT IDEAS

IDEA #1: Polyus company

Under the current conditions of uncertainty caused by the coronavirus, let us turn our attention to the issues of the largest Russian gold miner - the Polyus company. It should be noted that in spite of the “protective” nature of gold, the company's Eurobonds were also swept by a wave of sales, although to a slightly lesser extent. So, since the beginning of March, Polyus issues lost about two figures in value, while the price drop of senior Russian securities from companies in the real sector of comparable duration reached 3 pp.

Due to the virtually no premium for duration, we single out the shortest issue in the issuer's line - maturing in 2022. We are waiting for the z-spread to normalize as the market stabilizes.

Alexey Shternshis
Joint Managing Director
Capital Pi 

https://capitalpi.fund/market-signals-200317