Fixed Income Analysis /

OI: Numbers still don’t add up. Reiterate SELL

    Rafael Elias
    Rafael Elias

    Director, Latin America Credit

    Tellimer Research
    19 December 2017
    Published byTellimer Research
    We have analysed the most recent proposal to be presented to investors on 19 December (unless it is postponed again), and our calculations still do not add up to a recovery level on par with where the bonds are currently trading. Under our best-case-scenario (and with the same caveat we have highlighted all along, that this is really more of an equity play than a fixed income exercise) we get recoveries in the mid-to-high thirties. The bonds currently trade in the low-to-mid forties.