(Bloomberg) -- Investors may make more bets on the improving finances of Softbank Corp., Japan's third-largest mobile phone company, by selling credit-default swaps, Morgan Stanley Japan Securities Co. said.
Sellers of the derivatives, which provide buyers with protection from a firm's inability to repay debt, are attracted by a price that overstates the chance Softbank will fail to meet its obligations, said Hidetoshi Ohashi, a Morgan Stanley credit analyst in Tokyo. The extra yield investors demand to hold Softbank bonds over Japanese swap rates has halved in the past year. Spreads on Softbank credit-default swaps fell by a quarter.
Read more at Bloomberg Bonds News
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