Factsheets Back
31 . 07 . 2019
Market Overview


In July, Lebanese Government Eurobonds’ prices dropped slightly by around USD 1-2 along the curve. The IMF stated that risks and vulnerability remain for Lebanon and that projected deficit, after parliament’s passing of budget, is likely to be above the authorities’ target rate and the Finance minister says Debt-to-GDP is expected at 151% in 2019; a positive sentiment came from Saudi Arabia’s commitment to support the economy through debt purchases. CDS levels for 5 years spiked by around 90 bps reaching new highs at 970 ask-spread levels. In the GCC, 5 year CDS levels remained mostly stable. Oman issued 5.5 and 10 year USD bonds at 4.875% and 6% coupons respectively; Fitch affirmed the country’s credit rating at BB+. Saudi Arabia also launched EUR 3 bln in bonds with 2 tranches of 8 year and 20 year at 0.782% and 2.042% yields respectively. Fitch stated that UAE banks’ asset quality will see continued pressure.