Lakshmi Iyer, CFA

Credit

<p>The Oxley USD ’21s fell sharply on July 28 after an announcement by <a href="https://www.smartkarma.com/entities/oxley-holdings-ltd" target="_blank" data-smartkarma-citation="entities:1097:1" rel="noopener">Oxley Holdings (OHL SP)</a> that it would post a loss for the year ended June 30, 2020 (without providing further details). As such, the bonds sold off sharply (from 96 to present levels of around 88 cents to the dollar). With its result release on Friday, the company has provided color on the losses. We feel there is no fundamental change in credit quality – as such the bonds will likely trade up in the near term (i.e. – retrace the losses).</p>

The Oxley USD ’21s fell sharply on July 28 after an announcement by Oxley Holdings (OHL SP) that it would post a loss for the year ended June 30, 2020 (without providing further details). As such, the bonds sold off sharply (from 96 to present levels of around 88 cents to the dollar). With its result release on Friday, the company has provided color on the losses. We feel there is no fundamental change in credit quality – as such the bonds will likely trade up in the near term (i.e. – retrace the losses).

Oxley Holdings

Oxley 21s - Short Term Trade Idea