HALISTER1: BofA Recommends Extending Duration in Russian, Kazakh O&G Bonds

BofA Recommends Extending Duration in Russian, Kazakh O&G Bonds

(Bloomberg) -- Russia’s corporate Eurobond curve is much steeper than sovereign curve, leaving room for spread compression, especially in O&G bonds due 2020-2023, Bank of America analysts Kay Hope and Ali Dhaloomal say in note to clients.
  • Recommends Overweight on KazMunaiGaz Eurobonds due 2018-2023
  • Recommends moving from Gazprom 2019 bonds into KMG 2021 bonds
    • Moves Gazprom 2019 recommendation to Underweight from Marketweight
  • Recommends switching from Gazprom 2018 to Gazprom July 2022 bonds
  • Recommends switching from Rosneft 2017 into Gazprom 2020 bonds
  • NOTE: BofA commodity teams sees oil at $47/bbl by end-June
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
GAZP RM (Gazprom PAO)
RDGZ KZ (KazMunaiGas Exploration Production JSC)

People
Kay Hope (Merrill Lynch & Co Inc)
Ali Dhaloomal (Merrill Lynch International)

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