The bond market is rooting for a merger of Newmont Mining (NEM) and Barrick Gold (ABX), sending bond prices higher amid reports the companies have recently explored a merger, which could help shore up their finances while gold prices are down.
NEM debt maturing in 2042 was the second-most-traded U.S. corporate bond today, with ~$65M of bonds changing hands, trading with a yield of ~5.90% vs. ~6.15% earlier this month; ABX debt maturing in 2043 was yielding 5.64%, down from ~5.80% earlier in the month.
Bonds from investment-grade metals and mining companies have performed well YTD, returning 4.51% vs. 3.59% for investment-grade companies overall.
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April 22nd, 2014 at 6:56 am
Newmont, Barrick bonds rally on merger talks
Yesterday, 04:59 PM ET · NEM