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’Dubai: It’s a ‘frontier market’ for a reason
Kudos to Zawya Dow Jones for keeping an eye on an evolving legal dispute between Dubai Islamic Bank (DIB) and four businessmen.
Proponents and practitioners of Sharia-compliant finance are fond of trumpeting the safety,
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,
Dubai repays $980m Nakheel bond on time
Finally, some good news:
May 13 (Reuters) – Dubai repaid a $980 million Islamic bond issued by developer Nakheel while another state-owned firm said it was confident of refinancing an upcoming loan as it digs out from a massive debt burden.
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,
‘Internal Dubai government resources’ to the rescue
Breaking — Dubai’s palm-shaped islands would appear to be safe once more.
The emirate’s government said on Thursday it would stump up cash for the firm’s debt restructuring — including the liabilities of property developer Nakheel — to the tune of $9.5bn.
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 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,
S&P and Fitch to Dubai: ‘not so fast…’
Ratings agencies Standard & Poor’s and Fitch have issued responses to Dubai’s surprise repayment of the now infamous $4.1bn Nakheel sukuk.
And just in case the emirate was labouring under any misconceptions,
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.
Nakheel bondholders are having a ‘temper tantrum’
The UAE’s English language newspaper The National put out a snippy editorial on Wednesday, lecturing about the perils of moral hazard and the like.
In short, it told Nakheel bondholders to get over themselves,
The Palm is NOT sinking, says Nakheel
While we’d heard rumours from industry sources that the Palm Jumeirah might be sinking into the seabed, FT Alphaville never had any evidence to support them.
Nor could we corroborate rumours that questionable building standards in Dubai had led to cracks and window damage in many of the emirate’s new property developments.
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.
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.
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.
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,
Dubai rejects debt guarantee
Dubai’s government will not guarantee the debts of Dubai World, the state-owned holding company struggling with $59bn in liabilities, arguing that lenders were mistaken to think there would be sovereign backing.
Port in a storm: DP World’s London Gateway struggles for funds
The flagship UK development of DP World, the port arm of the troubled Dubai World, looks to be sinking as it struggles to raise financing for the project, based on the Thames at Thurrock in Essex.
The London Gateway project,
CDS report: Dubai has more in common with Latvia than Iceland
Gavan Nolan of Markit wrote this CDS report
European credit and equity markets suffered a torrid session today as the debacle in Dubai sparked a fresh bout of risk aversion. The Markit iTraxx Europe index ended the day at 89.5bp,
RBC: Dubai is just another case of irrational exuberance
RBC’s emerging markets team have published their view on the whole Dubai debacle.
And in their opinion it was always abundantly clear there was never going to be any recourse back to the sovereign’s assets for Nakheel bond investors.