Factsheets Back
31 . 05 . 2018
Market Overview


This month was one of the worst, in the past few years, for the local fixed income market; regional political tension coupled with local economic weakness drove Lebanese Government Eurobonds prices even further to record low levels, offer prices were down by around USD 5 to 15 along the curve in the past 2 months which reflects the increase in market risk. Lebanon 5 and 10 year CDS also jumped by around 100 bps to reach 630 and 660 record-high levels respectively. The Lebanese Central Bank sold USD 3 bln in Eurobonds with 3 maturities between 2028 and 2034 yielding from 7 to 8.25%; this came after an LBP to USD debt swap operation with the Ministry of Finance for USD 5.5 bln which is said to help secure financing needs for 2018 and boost Central Bank FX reserves. In the GCC region, 5 years CDS levels remained mostly stable except for Bahrain which had a significant increase by around 60 bps given investor concerns over the country’s economic fundamentals and an IMF report stating that the Kingdom needs to accelerate budget reforms to sustain its economy.