gcc public debts reached to415 billion
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

According To Report

GCC public debts reached to $ 415 billion

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice GCC public debts reached to $ 415 billion

National Bank of Kuwait
Jeddah - Emirates Voice

A report issued by the National Bank of Kuwait’s Studies and Research Unit confirmed a decline in yields on Gulf sovereign bonds in parallel with a decline in risks and a rise in oil prices. Gulf Cooperation Council debt issuance picked up in the third quarter of 2017 as the typically slower summer season came to an end but activity remained predominantly in the public sector, the report said.

Total new issuance amounted to $24 billion compared to $21 billion in 2Q17. Private sector activity continued to weaken in 3Q17, with the share of sovereign issuances up to 94 percent. Total outstanding debt was up a healthy $20 billion, to rest at $415 billion, according to the report. Sovereign activity was strong during 3Q17 with $23 billion in new issuances and the bulk coming from Saudi Arabia.

Bahrain tapped international markets for the second time this year with a $3 billion issuance. Despite Bahrain having a rating below investment-grade by the three main rating agencies, the offering was well received and almost five times oversubscribed, reflecting the strong appetite and increased attractiveness of the regional debt market. Saudi Arabia and Kuwait issued domestic debt of $11 billion and $4 billion, respectively.

Following the sharp increase in the Credit Default Swap (CDS) rates on the back of Qatar’s dispute with its GCC neighbors, CDS rates for most of the tracked sovereign’s came off in 3Q17. For the most part, the region’s risk profile benefited from the recovery in oil prices. CDS rates for Saudi Arabia and Qatar dropped the most, by 31 bps and 22 bps, respectively. As for the rest of the GCC, their rates were little changed.

GCC debt issuance is expected to remain healthy in 4Q17 as sovereigns continue to seek cheap deficit financing in favorable market conditions. In early October, Saudi Arabia raised $12 billion in dollar-denominated debt almost a year after its debut international issuance. Abu Dhabi also just completed a $10 billion international offering.

GCC yields tracked international markets and closed the quarter slightly lower. The quarter saw a marked improvement in oil prices, which also helped GCC yields move lower. Oil prices were up 25 percent in 3Q17, increasing the appeal of regional paper as fiscal concerns were alleviated. Most GCC sovereign yields were marginally down on the quarter.

Yields on GCC sovereign bonds dropped more notably following the sell-off seen in 2Q17. On the international level, global and GCC debt markets yields traded in a narrow range in 3Q17 as central banks’ increased hawkishness and the improving economic outlook were countered by geo-political tensions, White House political challenges and stubbornly low inflation.

Issuance in the GCC picked up in 3Q17, but continued to be dominated by domestic sovereign issuance. Bahrain was the only country to issue internationally. GCC primary debt market activity is expected to stay healthy for the remainder of 2017.

International benchmark yields trended downward for most of the quarter as North Korea worries benefited safe haven assets. Persistently low inflation in the major economies also continued to put a cap on yields. However, most yields ended the quarter slightly higher following a more hawkish tone by the unveiling of President Trump’s pro-business tax plan late in the quarter.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

gcc public debts reached to415 billion gcc public debts reached to415 billion

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

gcc public debts reached to415 billion gcc public debts reached to415 billion

 



GMT 09:54 2018 Wednesday ,24 January

'Friendly and kind' N. Korean skaters

GMT 07:16 2018 Thursday ,18 January

Macron's tapestry gesture risks rousing

GMT 23:45 2018 Tuesday ,23 January

Europe in the pink of health, feels Bjorn

GMT 16:03 2017 Friday ,05 May

Ban on Omani foods

GMT 03:07 2017 Saturday ,30 September

Facebook helps UAE resident reunite with brother

GMT 00:05 2017 Wednesday ,15 November

Deadly heat from climate change may hit slums hardest

GMT 10:18 2016 Thursday ,27 October

Sharjah Book Fair’s Professional Programme attracts

GMT 13:56 2012 Sunday ,21 October

King Mohammed VI Gulf tour

GMT 19:28 2017 Sunday ,12 March

Carlos the Jackal faces trial again in France

GMT 05:55 2018 Tuesday ,23 January

US tax reforms send UBS profits plunging

GMT 06:01 2018 Saturday ,20 January

How to take a bullet, by 'Den of Thieves' star 50 Cent

GMT 23:50 2018 Thursday ,18 January

1.5 C climate goal 'very unlikely' but doable

GMT 08:42 2018 Wednesday ,17 January

Was preparing new version of 'Zombie'

GMT 13:06 2018 Tuesday ,16 January

The London Fashion Agency relaunches as LFA

GMT 14:17 2017 Friday ,03 February

Facing Trump trade threats, Mexico eyes new partners

GMT 10:33 2017 Thursday ,28 December

Putin files nomination for 2018 re-election bid

GMT 08:01 2017 Tuesday ,21 November

China's Tencent overtakes Facebook

GMT 10:15 2017 Tuesday ,21 November

US-Saudi warplanes hit Sanaa

GMT 07:42 2010 Wednesday ,15 September

Global regulators agree on tougher Basel III bank rules
Emiratesvoice, emirates voice
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice