Video

#SaxoStrats
Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Strategic trade
Trade view / 10 August 2015 at 10:56 GMT

#SaxoStrats: Shipper could bounce despite China woes

Fixed Income trader / Saxo Bank
Denmark
Instrument: CMA:xnys
Price target:
Market price:

v



Background

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.


u















CMA has slipped towards 91.00 as the China stock market crisis unfolds

r










— Edited by Martin O'Rourke


Read more from #SaxoStrats

Non-independent investment research disclaimer applies. Read more

4y
fxtime fxtime
Certainly worth watching as you suggest.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail