Glencore Capitulates: Scrambles To Avoid Default By Selling Equity, Dumping Assets, Cutting Dividend
Last Wednesday, just minutes after we reported that the best way to trade the "beginning of the end" for Glencore (which just days earlier Bank of America calculated would need a $12 billion capital injection to reduce its net leverage to a viable 2.0x, a number which is "only" $3 billion for 3.0x leverage), was still through GLEN's CDS, S&P finally woke up and made it clear that the next step for Glencore would indeed be a collateral waterfall-inducing downgrade, one which would have sent the credit default swaps into quadruple digit "junk" territory as the company's investment grade rating was suddenly in jeopardy (just as we had previewed weeks ago), unless something drastically changed..
http://www.zerohedge.com/news/2015-09-07/...ting-selling-equity-and-a |