With the collapse in demand and supply resulting from coronavirus lockdown measures, no clear pathway to recovery and much talk of a "new way of working" it's no surprise that prices for most mined commodities are slumping.
Whilst cost structures have declined due to strong dollar and weak energy prices this is not enough to prevent margins collapsing and companies haemorrhaging cash. And the situation could get worse.
Many businesses are under duress, and may turn to debt markets to fund operations. There are opportunities for credit and distressed debt investors in this environment.
Please join us for our webinar, where our experts will discuss:
- How much demand destruction will occur and how long will it take the sector to recover ?
- Lessons from past cycles: in a low-price environment, when does cost support kick in ?
- Where are margins headed?
- What commodities and regions are worth a second look from a credit investment perspective?