BofAML forecasts $10bn gross issuance by Qatar this year - The Peninsula Qatar

BofAML forecasts $10bn gross issuance by Qatar this year - The Peninsula Qatar:

"GCC debt will be a strong play for investors in 2018. Qatar’s gross issuance for the year 2018 is expected to hit $10bn mark. In the GCC, issuance will be the key investment in the near term, particularly as issuers take advantage of low longer-dated US rates with Oman recently mandating banks for a triple-tranche deal, according to Bank of America Merrill Lynch (BofAML).
Given Qatar’s $2bn Eurobond is maturing this month, the country is expected to issue more debt in 2018. “We still see value in Qatar vs. GCC peers, trading almost 60bp wide for its rating,” BofAML’s MENA Economist Jean-Michel Saliba (pictured) said yesterday. BofAML is forecasting $8.5bn gross issuance in Oman this year, he said.
Elsewhere, BofAML is Underweight (UW) on Kuwait and Abu Dhabi; although the balance sheets of both issuers are extremely strong, particularly given sovereign wealth assets, valuations are tight, with the search for yield likely to benefit higher-spread sovereigns."



'via Blog this'