Vale Bond Buyers Tempted by Rebound in Iron Ore: Brazil Credit

Investors are scooping up bonds sold by Vale SA, the world’s largest iron-ore producer, on speculation that a rebound in the steel-making ingredient from a two-year low will reverse a slump in profits.

Yields on the Rio de Janeiro-based company’s $2.25 billion of notes due 2022 have dropped 0.34 percentage point to a 13-month low of 3.91 percent since June 16, when ore prices bottomed, data compiled by Bloomberg show. Vale’s notes have returned 2.4 percent in that period, eclipsing gains in the debt of rivals BHP Billiton Ltd. and Rio Tinto Group, the world’s two largest mining companies by market value.