Bond Market Devouring Record Gulf Debt Won’t Touch Oman, Bahrain - Bloomberg:
Oman and Bahrain are stuck on the sidelines of the international debt markets after a record borrowing tally by Gulf Arab economies this month underscored a divide between the region’s strongest and weakest sovereigns.
Facing external financing needs that Goldman Sachs Group Inc. estimates at $5.5 billion this year, Oman and Bahrain are all but shut out from bond funding, waiting for their yields to retreat before wading into the market. Their wealthier neighbors in April raised a combined $24 billion in sales that collectively drew about $140 billion in investor demand.
“Oman and Bahrain will be unlikely to issue unless markets stabilize,” said Abdul Kadir Hussain, head of fixed-income asset management at Arqaam Capital in Dubai. “High-yield pricing remains very dislocated.”
Although no nation in the Gulf is immune to the historic collapse in oil prices and the coronavirus pandemic, Oman and Bahrain stand out for their precarious public finances and strained reserves. Investors who piled into the sultanate’s debt sale less tha
Oman and Bahrain are stuck on the sidelines of the international debt markets after a record borrowing tally by Gulf Arab economies this month underscored a divide between the region’s strongest and weakest sovereigns.
Facing external financing needs that Goldman Sachs Group Inc. estimates at $5.5 billion this year, Oman and Bahrain are all but shut out from bond funding, waiting for their yields to retreat before wading into the market. Their wealthier neighbors in April raised a combined $24 billion in sales that collectively drew about $140 billion in investor demand.
“Oman and Bahrain will be unlikely to issue unless markets stabilize,” said Abdul Kadir Hussain, head of fixed-income asset management at Arqaam Capital in Dubai. “High-yield pricing remains very dislocated.”
Although no nation in the Gulf is immune to the historic collapse in oil prices and the coronavirus pandemic, Oman and Bahrain stand out for their precarious public finances and strained reserves. Investors who piled into the sultanate’s debt sale less tha
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