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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Volvo Cars (VOLCARB SS) credit barely moved on formalisation of halt to funding loss-making subsidiary, Polestar.
- Volvo Cars formally indicated its intention to cut its stake in Polestar to 18% (from c.48%) by distributing stock to its shareholders and it has said it will “not provide further funding to Polestar”. This will be voted on at the AGM on 26-Feb though had been indicated at the results on 1-Feb.
- Polestar took a convertible loan from Volvo of USD200m in Nov-23, bringing the total in that line to USD1bn. This is 10% of Volvo’s market cap, so a not insignificant exposure.
- Much as this was publicised earlier this month, the equity is meaningfully lower today and the cash bonds trading marginally wider (though little price change). Prices are only up very marginally over the last month (<1%) even with this credit positive news though we note they already trade alongside similarly rated Renault.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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