Brazil's BES Investimento Pulls Bond Deal On"Market Conditions", Company Is Local Unit Of Portuguese Bank

This week showed just how jittery the IPO sentiment was, with so many IPOs pulled on "market conditions" even including perpetual cash cows such as porn sites. Now the weakness in the market is shifting to bonds. The latest casualty is Brazil's BES Investimento bank which has postponed a $350 million bond on "market conditions." We are not so sure if the reason is with "market conditions" or whether the true reason has to do with BES being a local unit of Portugues bank Banco Espirito Santo S/A. We anticipate any corporate entities that have a relation with an increasing number of European countries will soon become locked out from the capital markets.

From Dow Jones:

SAO PAULO (Dow Jones)--BES Investimento do Brasil SA bank has postponed plans to issue an overseas bond because of "current adverse market conditions," a person close to the operation said Friday.

"As BES has no urgent needs to raise money, it was decided to postpone the operation to wait better market conditions," the person, who declined to be named, told Dow Jones Newswires.

BES was planning to raise about $350 million from the bond issue, which was expected to carry a maturity of five years.

Comments

[Daedal]

or whether the true reason has to do with BES being a local unit of Portugues bank Banco Espirito Santo S/A.

That's some funny s**t.

[wang]

If there was any doubt about Simon Johnson injecting his partisan politics into the bailouts etc read this (he and his buddy Kwak (baslinescenario) are now off my list) - He is actually worse than Krugman who at least is overt about his ultra left wing politics (Johnson and Kwak actually wanted the K man as Fed Chair)

Goldman-Sachs and the Republicans

http://baselinescenario.com/2010/02/05/goldman-sachs-and-the-republicans-2/

the dems are desparately trying to associate the republicans with Wall Street ignoring Obama's loading his admin with banksters and their ilk.

[David449420]

I doubt that Krugman would have been as disastrous to the US economy as Bernacke appears to have been.

[alexdg]

BES stock in the portuguese stock market (indice PSI20) has been hit hard. Losing almost 16% in 3 days, and 25% from a month ago. Anyways, they are still probably the best Bank in Portugal (an economic group with many investments abroad, including oil rich Angola and Brazil, etc.). Just recently posted strong earnings and at current quote represent a 4% yield. 

[Zina]

Os portugas estão mesmo ferrados!

[Anonymous]

Yesterday pre-melt:
The "Santander Syndrome": A Strategy For Fools
http://www.larouchepac.com/node/13399

ECB Funds for Santander Helped Bail Out the British Royal Family
http://www.larouchepac.com/node/13400

Today:
LaRouche Was Right on Banco Santander
http://www.larouchepac.com/node/13413

The messenger is... but the message is dead-nut.

[Anonymous]

CPI came at 0.7% MoM. Expect rate hike on next meeting.

[jmc8888]

Personally I want to see what happens to real/ruble trade when Santander blows up on RBS and the London banking system. 

Another case of 'boris yeltsin went to bed drunk, and brazil woke up for the hangover'?

Except maybe 'the queen nodded off during tea and crumpets, and brazil woke up toast'

That could be the catalyst for the London implosion. 

Ahh somebody already sees it too ha ha.