July 14, 2024
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Goldman Sachs, JPMorgan Say Adani Debt Offers Value To Trading Clients

Some clients have been informed by Goldman Sachs Group Inc. and JPMorgan Chase & Co. that bonds associated with Gautam Adani’s corporate empire may be worth investing in due to the strength of specific assets.

The bonds of Adani Ports & Special Economic Zone Ltd. have become interesting at the current price due to the value of that company’s assets, according to people with knowledge of the situation. Goldman Sachs trading executives expressed the firm’s view that Adani debt had hit a floor in the short term on a call with investors on Thursday, they said. JPMorgan credit analysts stated in a note to clients that they saw value in the debt of some Adani operating entities before Adani withdrew a stock offer.

Opportunistic investors have started to pay notice to Adani securities in the midst of a terrifying equities crash and a debt crisis that sent certain bonds to distressed prices. Clients of the largest Wall Street banks are now interested in learning the magnitude of the problem surrounding the Indian billionaire, who was the target of a short-seller before abandoning a planned share sale for his main company Adani Enterprises Ltd.

Adani Ports’ debt was praised by Goldman Sachs traders as being liquid enough to trade and well-capitalized with cash on hand. According to the sources who asked not to be identified discussing private views, they also anticipated that this corporation would be able to renew its debts while also having the potential to draw equity investors and sell assets.

Regarding the client call, a Goldman Sachs spokeswoman declined to comment.

Prior to the call, Goldman claimed to have traded around $170 million in Adani bonds, generating interest from international funds and distressed investors outside of Asia who wanted to purchase the debt at an affordable price.

Following the company’s cancellation of a planned $2.4 billion offering on Wednesday, despite having received funding from the Middle East and India, bonds of Adani-affiliated companies fell below distressed levels.

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