Thursday 30 January 2020

UPDATE 1- #Lebanon's March 2020 bond in record rally on payment hopes - Reuters

UPDATE 1-Lebanon's March 2020 bond in record rally on payment hopes - Reuters:

Lebanon’s March 2020 bond rallied by a record amount on Thursday, signalling growing investor hopes that the $1.2 billion issue might be repaid despite the country battling its worst economic crisis in decades.

Market sentiment towards debt-laden Lebanon has improved since Prime Minister Hassan Diab on Wednesday asked the government and banks for a plan to restore confidence and ease a liquidity crunch.

Lebanon’s March 2020 bond, its most immediate debt maturity, surged 4.1 cents in its biggest daily gain on record, although it still only stood at 80.5 cents in the dollar.

While Lebanon’s longer-dated bonds are trading at less than half their face value, indicating a high probability of a debt default or restructuring at some point, the market has focused on whether the government will meet the March obligation.

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