AngloGold Bonds Revive Paulson Spinoff Call: South Africa Credit
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AngloGold Ashanti Ltd.’s bonds have plunged as the world’s third-biggest gold producer is weighed down by its South African operations, reigniting calls from investors for the miner to spin off its assets in the country.
Yields on AngloGold’s dollar debt due in July 2020 surged 117 basis points since being sold on July 25 to a record 9.59 percent on Aug. 7, according to data on Bloomberg. It’s the most-traded dollar emerging-market security over the past 10 days, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The average yield on dollar bonds of emerging-market metals and mining companies rose 18 basis points, JPMorgan Chase & Co. indexes show.