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31/1/2016 To Nobley go where no commodity trader has gone before | FT Alphaville
http://ftalphaville.ft.com/2016/01/11/2149810/tonobleygowherenocommoditytraderhasgonebefore/ 1/3
To Nobley go where no commodity trader has gone before
Noble Group chairman Richard Elman has increased his stake in the beleaguered commodity trader in an attempt to offset the
ill effects from last week’s downgrade of the company’s credit rating to junk status by S&P.
As of last Friday, Elman holds 22.1 per cent of the company, up from just below 22 per cent according to Reuters.
Not that Elman’s move has helped to shore up the CDS or the bond yields, which on Monday were testing levels last seen in
2008 when rival Glencore 1year CDS soared to 2283.05.
The last print from Bloomberg had Noble 1year CDS at 2130.51 (click to expand):
Izabella Kaminska Author alerts  Jan 11 15:44 2 comments
ft.com > comment > blogs >
FT Alphaville

And the reason we’re talking oneyear instead of fiveyear CDS is because, well, the curve is well and truly inverted:
Noble’s 2020yr bond is apparently yielding above 22 per cent, according to Reuters data.

S&P cut the commodity trader citing the higher risk nature of Noble’s trading positions, which it believed would increase the
volatility of earnings and profitability at the company.
Related links:
S&P cuts Noble Group outlook to ‘negative’, cites trading risk Reuters
PwC’s great Noble Group disclaimer – FT Alphaville
Noble Group, an ‘asset light’ commodity nomad – FT Alphaville
MF Global and the repotomaturity trade – FT Alphaville
This entry was posted by Izabella Kaminska on Monday January 11th, 2016 15:44. Tagged with Glencore, noble group.

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