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’Hello to bondholders, Dubai to banks
Or, what happens when an autocratic put and bad debts collide?
In which FT Alphaville wonders if one of 2011′s greatest stunts in defying credit gravity (charts via Exotix)…
…is on the verge of running into trouble.
Dubai World and creditors agree on debt
Fresh off the wires – some (rare) good news.
Dubai World has agreed — “in principle” — a deal with its creditors to restructure $24bn of debt.
Full statement below:
Dubai World Agrees Headline Economic Terms in Principle with Coordinating Committee
Dubai,
CDS report: Dubai, Greece push spreads tighter
After a weak start, European credit indices finished the day tighter as encouraging news on sovereigns supported spreads. The Markit iTraxx Europe index was trading around 78bp, about 1.5bp tighter than yesterday’s close,
Snap news
Breaking pre-market news on Thursday,
- Dubai World and Nakheel announce restructuring proposals – statement.
- Jarvis to be put into administration, requests share suspension – statement.
- Petropavlovsk announces JORC classified proven and probable reserves of 6.67m ounces – statement.
Dubai World: the restructuring that keeps on giving
The debt shenanigans at Dubai World are keeping analysts, investors and the financial media quite busy.
In the latest issue of Moody’s Weekly Credit Outlook, the rating agency estimates that Dubai World’s UAE-based creditor banks “would incur losses amounting to only around 9 per cent of their capitalization as of year-end 2009″
Dubai World debt: to pay or not to pay?
Further developments in the Dubai World restructuring saga.
The Dubai government is no longer seeking preferred creditor status, according to Reuters. If true, that removes a key sticking point in the $22bn debt work-out discussions.
60 cent
Fresh jitters in Dubai on Monday morning.
RTRS-DUBAI FIVE-YEAR CREDIT DEFAULT SWAPS RISE TO 651 BPS FROM 627 AT FRIDAY CLOSE-CMA
RTRS-DUBAI FIVE-YEAR CDS RISE ABOVE NOV 2009 LEVELS TO HIGHEST SINCE MARCH 2009-CMA
RTRS-NAKHEEL’S 2011 ISLAMIC BOND FALLS 3.5 POINTS TO 50,
Dubai CDS, deja vu
Something’s up in Dubai, and we were hearing on Friday that it just might have something to do with our favourite palm-tree island maker, Dubai World’s Nakheel.
As Reuters reported earlier, Dubai CDS has gone through the roof again:
CDS report: Greece and Dubai Continue to Drive Markets
Otis Casey of Markit wrote this CDS report
Early trading saw the Markit iTraxx indices and stock markets higher as investors were heartened to see the last minute Abu Dhabi bailout of Dubai. The Markit iTraxx Europe index tightened by more than 2 bp to 79.49 bp. The Markit iTraxx HiVol was 2 bp tighter at 118.33 bp while the Markit iTraxx Crossover finished at 476.30 bp,
Dubai’s Nakheel sticking plaster
One inevitable consequence of Abu Dhabi swooping to rescue its indebted neighbour is that some people will have made several large sacks of money.
Anyone who made bets on Nakheel 2011 bonds for example,
Statement From Sheikh Ahmad Bin Saeed Al Maktoum
14 December 2009
The Government of Dubai, acting through the Supreme Fiscal Committee (“SFC”), today announces a set of actions in relation to Dubai World:
Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Committee said:
Nakheel says it will pay/ Abu Dhabi rides to rescue
From Nasdaq Dubai on Monday morning:
14 Dec 2009 – 09:05:07 Nakheel Development Limited – Announcement Nakheel confirms that it will honour all obligations related to the 2009 Nakheel Development Limited Sukuk using funds that will be provided by the Dubai Financial Support Fund.
A closer look inside Nakheel
Nakheel’s unaudited interim condensed consolidated financial statements for the six months ended 30 June 2009 have become available on the Nasdaq Dubai website.
Unfortunately the formatting is not suited to copy and pasting.
Dubai utility faces $2bn debt demand
A wave of credit downgrades of Dubai’s state-owned companies have triggered an accelerated payment clause on a $2bn debt issued by the emirate’s utilities provider. Dubai Electricity and Water Authority’s $2bn securitization scheme,
CDS report: Greece and Dubai spark risk aversion
Markit’s Gavan Nolan wrote this CDS report
In what is becoming a familiar story sovereigns again drove direction in the financial markets, with nations in Europe and the Middle East causing volatility.
Tuesday Dubai doom and gloom
Dubai doom and gloom comes in the form of two things on Tuesday morning.
First — a mass Downgrade of Dubai Inc. companies by Moody’s, the text of which is below:
Moody’s announces further downgrades to Dubai Inc.
Dubai who?
How quickly the world forgets.
Just 13 days ago, markets were reeling from Dubai World’s request for a debt standstill.
But last week investors were already clamouring to ratchet up the risk, according to UBS’s Global Risk Radar.
Creditors in Dubai World talks
A group of international and regional banks met Dubai’s struggling conglomerate, Dubai World, for the first time on Monday as talks began on the company’s request to restructure debts of $26bn. People close to the talks said it was a “kick off” meeting for what is expected to be a protracted process,
Dubai banks downgraded
Standard & Poor’s downgraded a clutch of major Dubai banks on Thursday citing their exposure to the troubled, state-owned Dubai World, and warned further demotions could come soon. Fitch Ratings also put four banks on review for a downgrade,
Sovereign CDS liquidity snaps
Did the events of last week in Dubai really send jitters through emerging markets?
Here’s something to ponder in the emerging vs developed market debate — an issue aptly summed up in Deutsche Bank’s 2010 outlook on Wednesday.
UK banks owed $5bn by Dubai World
UK banks have an aggregate exposure to Dubai World of about $5bn, confirming them as the biggest creditor group at the stricken emirate holding company. A week after Dubai World called for a debt standstill,
Al Maktoum’s yearning for yearlings
Just a hunch, but we suspect that this story will do more lasting damage to Dubai than any other single article or illustration in the past tumultuous week.
Last week, as underlings in the embattled emirate were busy re-setting investors’ expectations as regards getting their money back from the likes of Dubai World,
The Dubai fear factor
Last week — when Dubai World announced it was seeking a debt standstill — was probably the first major bout of market jitters in recent months
Which means it’s time to test the fear gauges!
First we have the industry standard fear barometer — the Vix,
Na-kheeled over
Here’s an updated version of short interest in that Nakheel sukuk — courtesy of Data Explorers:
The thing to focus on here is not necessarily the spike in active utilisation in November but the slow decline in lendable quantity.
Creditors mobilise on Dubai debt plan
Bondholders and creditors including top hedge funds and banks have formed a group in response to Dubai World’s $26bn restructuring plans, even as Dubai’s ruler on Tuesday insisted that his debt-laden emirate’s economy remained sound.
Alwaleed: banks got Dubai wrong
Prince Alwaleed bin Talal, the billionaire Saudi investor, said banks that loaned money to Dubai World can’t claim to be victims of the emirate’s debt crisis because they should have understood the risks,
The shifting sands of UAE bank capital
Here’s some useful data from ratings agency Fitch – a breakdown of how the capital of banks in the United Arab Emirates is likely to be impacted by the Dubai World debt restructuring.
It’s basically an updated version of Fitch’s capital sensitivity test for UAE banks,
[Wilmot on AV] Markets After Momentum Peaks
Even after early cycle momentum peaks risk appetite tends to ebb, and risk assets tend to struggle for a while: developed equities usually under-perform bonds and emerging equities usually under-perform developed equities,
Dubai World – the $26bn debt workout begins
An overnight press release, with our highlights:
Dubai World (“Dubai World”) and its subsidiaries (the “Group”) would like to update their lenders on recent developments relating to their debt obligations.