NBA Champion Launches African Sports Development
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Business Insider
3 minutes ago
- Business Insider
Africa's second-largest oil exporter gets $200 million collateral back from JPMorgan after bond rally
Angola retrieved $200 million in May from collateral it had posted earlier this year to JPMorgan. Angola regained $200 million in May from its collateral posted to JPMorgan, enabled by the recovery of its sovereign bond prices. A margin call was triggered earlier under a $1 billion return swap agreement due to the bond's value drop caused by falling oil prices. The bond, initially falling to 86 cents on the dollar, recovered its value to 100 cents in recent trading. Angola retrieved $200 million in May from collateral it had posted earlier this year to JPMorgan, following a rebound in the price of its sovereign bonds, the country's finance ministry said. The repayment came after a sharp sell-off in April triggered a margin call under a $1 billion total return swap agreement between Angola and JPMorgan, signed in December, according to Reuters. The one-year derivative deal was backed by $1.9 billion in newly issued Eurobonds, which did not raise fresh cash for the government but served as collateral. As oil prices tumbled amid global tariff tensions, the value of Angola's bonds, quoted at 100 cents on the dollar in March, fell to 86 cents, prompting JPMorgan to demand additional security. The bond has since recovered and was quoted back at 100 cents on Wednesday, traders said. The structure of the deal has drawn criticism from some analysts due to its complexity. Total return swaps are rarely used in sovereign finance, and Angola's use of one shows the rising trend of opaque or unconventional borrowing among heavily indebted, low-rated African nations. The $1.9 billion bond used as collateral for the swap matures in 2030 and is listed on international markets. The financing from JPMorgan was split into two tranches, $600 million and $400 million, though it did not involve the issuance of new funds for public spending. Debt burden Angola, one of Africa's largest crude exporters, faces mounting economic pressures, including high external debt obligations, many backed by oil shipments to China, and growing public unrest over fuel subsidy removals and declining social spending. According to the head of Angola's debt management office, the country's oil-backed debt to China is projected to fall to between $7.5 billion and $8.0 billion by the end of the year.
Bloomberg
3 minutes ago
- Bloomberg
Lilly's Experimental Weight-Loss Pill Underperforms in Study
Eli Lilly & Co.'s experimental weight-loss pill had lower weight loss and higher rates of nausea and vomiting than anticipated in a study, according to the company. That news sent the stock plunging Thursday morning, even though the company raised its yearly profit and sales outlook. In the study, patients taking the drug orforglipron, lost roughly 11% of their body weight, about 25 pounds. Bloomberg's Damian Garde reports. (Source: Bloomberg)
Bloomberg
3 minutes ago
- Bloomberg
Highest US Tariff Among Developed Nations Takes Effect in Switzerland
Switzerland's government will hold an emergency meeting to consider the fallout from the US tariffs. Nicole Sy explains how the 39% surcharge on Swiss exports to the US compares among developed countries. (Source: Bloomberg)
