Friday Workout - Caner Chameleon, Unnatural Gas, Ice lands in stressed category
- Chris Haffenden
Still drenched from the deluge of EHY bond deals earlier this week, we at 9fin were hit by another storm, as Viceroy’s report on the Adler complex broke on Wednesday morning. Our focus shifted from reviewing yet more aggressive docs – with Modulaire and Arcaplanet notable mentions – to surveying the foundations of the short-sellers’ allegations as Adler and Aggregates bonds suffered severe subsidence, before receiving some underpinning later that day as cash buyers emerged.
The Adler short seller news diverted attention from Natural Gas prices going parabolic that morning before Putin rode to the rescue and daily price rises quickly reversed. But Natural Gas is still substantially higher than on 21 September when the CO2 crisis hit in the UK. I doubt the US-owned fertilizer plants will stay onstream in the North East when the UK government’s three-week subsidy runs out soon.