Underworked regional bond traders will soon be handed a much-needed fillip by a deluge of sovereign bond issuance by Gulf governments.
Kuwait, Qatar, and Abu Dhabi and Dubai in the United Arab Emirates are all planning to issue billions of dollars worth of bonds. These are primarily to secure financing for important development projects and government-owned subsidiaries, and in some cases to plug budget deficits.
Yet analysts say the most valuable contribution from fresh government bonds would be to provide a vital benchmark yield that Gulf companies can use to improve pricing and kick-start a badly needed regional corporate bond market.
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