Bond sales from the Persian Gulf region have slumped to the lowest level since 2008 as the threat of another global recession fueled the steepest surge in the region’s credit risk in seven quarters.
Sovereign and company debt issuance in the six-nation Gulf Cooperation Council, which includes Saudi Arabia and the United Arab Emirates, have totaled $1.54 billion since June 30, the smallest amount since the last quarter of 2008, data compiled by Bloomberg show. The average cost of insuring the Middle East’s notes against default jumped 81 basis points in the period to 351 on Sept. 26, headed for the biggest increase since the three months ended Dec. 31, 2009, according to data provider CMA.
Emerging-market bond funds saw the biggest capital outflows in more than two years in the week to Sept. 21, EPFR Global data show, as Europe’s debt crisis prompted investors to exit riskier assets. Last week, the Federal Reserve said there are “downside risks” to the U.S. economy and the International Monetary Fund cut its forecast for 2011 global growth to 4 percent from 4.3 percent. Abu Dhabi’s Tourism Development & Investment Co. and Dolphin Energy Ltd. deferred debt sales this quarter.
No comments:
Post a Comment