#SaxoStrats: Shipper could bounce despite China woes
Shipping giant CMA CGM recently secured re-financing of bond issues before market turmoil this summer hit container freight rates on the back of China's ongoing slowdown.
Nevertheless, as the third largest worldwide shipping company with a fleet of 428 ships on 170 shipping routes, the new bond could be ready to rebound. The hit it has taken as a consequence of the fallout from China looks excessive and a more positive economic outlook in Europe and US should be supportive.
This bond was issued in June 2015 with the purpose of replacing existing and more expensive bond issues, which have been called.
Management and risk description
Key risks include freight rates, price dumping and further economic fall-out in China.
CMA has slipped towards 91.00 as the China stock market crisis unfolds
— Edited by Martin O'Rourke