Itau Getting Bond Market’s Attention With Bearish Tin Maker Call
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After a three-day visit with some of Peru’s biggest mining companies in Lima earlier this month, Itau BBA credit-research analyst Soummo Mukherjee returned with a message for bond investors: Get out of tin maker Minsur SA.
His recommendation comes as a collapse in prices for the metal threatens to batter a company that gets about 80 percent of its revenue from the raw material used in everything from smartphones to cans. Tin prices have plummeted 33 percent in the past year and a rebound isn’t expected any time soon as new mines in Indonesia and Myanmar swell supply, says Mukherjee.