HSBC Pitches Petrobras-Tainted Oil Rig Bonds Nobody Wants
This article is for subscribers only.
In the months since Brazil’s largest bribery scandal broke, bond investors have fled companies tied to the alleged kickbacks. They’ve been far too hasty, according to HSBC Holdings Plc and Mizuho Securities USA.
Odebrecht Offshore Drilling and Queiroz Galvao Oil & Gas Constellation are a case in point. Their securities have plunged at least 27 percent since Nov. 13, when federal police said they found “strong evidence” that at least seven builders, including the parent companies of the two oil-rig providers, formed a cartel to win public contracts.