Thursday 20 June 2013

MIDEAST DEBT-Bahrain between rock and hard place in bond decision | Reuters

"Bahrain faces a dilemma in coming days as it decides whether to issue a sovereign bond at a time of extreme volatility in global markets. It is a dilemma which issuers confront around the world - but in Bahrain's case it looks particularly acute.

The island kingdom, which is alone among the six oil exporters of the Gulf Cooperation Council in running a sizeable budget deficit relative to its economy, this week completed investor roadshows in the United States, Middle East and Europe for a potential bond issue of at least $500 million.

Since then, the rout in global debt markets has worsened, after U.S. Federal Reserve Chairman Ben Bernanke said on Wednesday that the U.S. economy was strong enough for the Fed to begin slowing the pace of its bond-buying stimulus this year. He signalled an end to the programme by the middle of 2014."

'via Blog this'

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