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Policy & Government

Lebanon’s Default Barely Heard Amid Global Markets Rumbling and Tumbling

It came not with a bang, but a whimper. The Middle Eastern country’s failure to pay USD1.2bn on its March bond appears to put the ball in creditors’ court. But as coronavirus-linked turmoil and the collapse of oil prices dominates the headlines, Lebanon seems to be way down the pecking order on the elongating list of investors priorities.

11 Mar 2020

Kenya Roads Board Bond ‘Potential Game Changer in Domestic Debt Investment’ – Sterling Capital

Kenya Roads Board (KRB) is set to issue a KES150bn bond on an annual basis over the next five years. The proceeds of the bond will be used to finance infrastructure development.

11 Mar 2020

Downgrade Would Lead to Exponential Growth in Borrowing Costs – Rand Merchant Bank

The possibility of a Moody’ downgrading the South African sovereign has long been under discussion. But according to Ettienne Le Roux, Chief Economist and Elena Ilkova, Credit Research Analyst at Rand Merchant Bank, a rating downgrade could provoke a much more severe reaction than the simply exclusion of the country’s debt from global indices.

9 Mar 2020

Credit Growth in Mexico Stays in Single-Digit Territory for Ninth Straight Month

Credit growth in Mexico in January hit 5.3% in nominal terms and 2% in real terms according to the latest data published by the Bank of Mexico, making it the ninth straight month of single-digit private sector credit growth on record and adding to a growing and worrying list of indicators signalling an economic slowdown.

9 Mar 2020

On the Ground and Off the Record: What Will Drive the Infrastructure Sector in Saudi Arabia This Year?

The year ahead looks to be a busy one for Saudi Arabia. A strong project pipeline will provide opportunities for many inside and outside the country, but the sheer scale and complexity of these will test the market, according to bankers, corporates and investors who spoke with Bonds & Loans on a recent research trip to the region.

6 Mar 2020

India to Counter Impact of Coronavirus Through Renewed Credit Growth – IDFC Mutual Fund

The Fed’s decision to cut rates on Tuesday by a further 50bps in response to the coronavirus marked the latest in a series of strong policy responses from monetary authorities and governments worldwide. According to Suyash Choudhary, Head of Fixed Income at IDFC Mutual Fund, India looks likely to follow the US in utilising additional fiscal and monetary measures.

5 Mar 2020

Russian Government Issuance Surged in 2019, RUB and Hard Currency Bond Yields Diverge

Demand for government notes grew 1.5x from 2018, but was outpaced by more than 3x increase in supply, according to official state figures.

4 Mar 2020

IMF Marks “Good Progress” in Ukraine Visit, but More Reforms Needed

The International Monetary Fund said this week that it had made good progress in talks with the Ukrainian authorities over the approval for a new loan programme to Ukraine worth USD5.5bn but its disbursement depends on Kiev’s performance on reforms, including a special law on banking.

3 Mar 2020

Risk of Oil Price Collapse ‘High’ as Russia Urges Caution on OPEC+ Action - Standard Chartered

Russia’s slowness to respond to a fall in demand for oil following the coronavirus outbreak could send oil prices plummeting to as low as USD30 per barrel, according to analysts at Standard Chartered Bank.

2 Mar 2020

As Oil Plummets, Pemex Seeks to Shore Up Finances with Braskem Idesa Contract Renegotiation

Mexico’s president, who famously scrapped the partially-completed New Mexico Airport project, is similarly intent on cancelling the oil giant’s contract, which he feels was signed under unfavourable terms. What that will mean for Pemex’s credit – and for the already souring investor sentiment around Mexico – is another question.

29 Feb 2020

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