Petrobras No Match for GE as Sale Spurs Decline: Brazil Credit
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Petroleo Brasileiro SA’s record $6 billion international debt offering is sparking the biggest slide in the state-run Brazilian oil company’s bonds in 10 weeks as it creates a supply glut.
The company’s dollar bonds due in 2020 sank 2.5 cents on the dollar, pushing the yield up 34 basis points in the week through yesterday, according to data compiled by Bloomberg. In the five days through General Electric Capital Corp.’s sale of $6 billion of debt on Jan. 4, yields on its bonds due 2015 fell 25 basis points. The two offerings are the biggest in the U.S. market in 11 months.