Dubai Selloff Eases as Latvia, Senegal Plan Bonds, Yields Fall

In a sign the global selloff caused by Dubai’s debt crisis is over, Latvia, the European Union country worst hit by the worldwide recession, and sub-Saharan Senegal began pitching their first sales of bonds in dollars as emerging markets recovered.

Latvia hired Citigroup Inc. and Credit Suisse Group AG to gather bondholders in Europe and the U.S. this week and next, three investors approached for the offering said yesterday. Senegal, rated four levels below investment grade by Standard & Poor’s, organized meetings via Citigroup starting Dec. 7, a banker involved said.

The offerings underscore a rebound in developing-nation markets in the week after Dubai said Nov. 25 it would seek to delay debt payments from state-controlled Dubai World, with more than $59 billion of obligations, according to Atlanta-based Invesco. Emerging-market bonds lost 0.8 percent after the announcement, the steepest decline since April, on concern the emirate was poised to default.