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canada goose coats on sale DUBAI/LONDON (Reuters) The cost of insuring Saudi Arabia debt against default fell to its lowest this year and Saudi bank shares jumped on Thursday in a sign that a mammoth $17.5 billion bond issue has partly eased cheap canada goose uk doubts about the kingdom ability to cope with cheap oil. canada goose coats on sale
Canada Goose Parka A man walks past the Kingdom Centre Tower in Riyadh, Saudi Arabia April 12, 2016. dollar. Canada Goose Parka
But the massive demand attracted by the Saudi government first international Canada Goose Jackets bond sale on Wednesday, the largest emerging market debt deal in history, is causing some canada goose uk black friday speculators to reduce or abandon those bets, bankers and traders said.
lot of the hedge funds made speculative bets on the Saudis because of the well known issues they had like the depeg story, where everyone thought the Saudis would have to depeg, said a debt trader in London.
canada goose coats that has kind of unwound now because the bond has been such a success. canada goose coats
Canada Goose sale Five year Saudi credit default swaps SAGV5YUSAC=MG fell 10 points to 132 points on buy canada goose jacket cheap Thursday, implying a 9 percent chance of a sovereign default in the next cheap Canada Goose five years. Canada Goose sale
canada goose That still left Saudi CDS trading above the Philippines PHGV5YUSAC=MG at 113 points, showing Riyadh remains far from regaining all of https://www.canadagoosesale.info the market confidence it lost last year. Until mid 2015, its CDS hovered around 60 points. canada goose
canada goose clearance sale But other markets also showed that canadian goose jacket the jitters were canadagoosesale easing. canada goose clearance sale
Canada Goose online Bond market sentiment throughout the region improved, with the yield on Qatar June 2021 sovereign bond 74727PAT8= down 5 basis points since Tuesday. Canada Goose online
After pricing more tightly than expected, Saudi Arabia new bonds rose further in the secondary market, gaining about 10 basis points because of massive unsatisfied demand for the paper.
buy canada goose jacket cheap INFLOWS Much of that demand stems from ultra low global interest rates and huge pools of canada goose clearance sale idle canada goose money rather than expectations for strength in the Saudi economy, which may remain sluggish for at least several years as canada goose coats on sale Riyadh canada goose uk shop grapples with its budget deficit. buy canada goose jacket cheap
canada goose deals The International Monetary Fund warned this week that Gulf oil exporters including Saudi Arabia faced considerable risks. canada goose deals
adverse feedback loop Canada Goose online between budget spending cuts and tightening credit conditions could reduce the private sector ability to pick up the slack canada goose coats created by the shrinking public sector, it said.
canadian goose jacket But this week bond Canada Goose Outlet issue Canada Goose Online looks set to benefit the kingdom in several ways. By creating a new source of dollar inflows bankers expect another sovereign issue as soon as next year the bond should reduce pressure for the riyal to depreciate. canadian goose jacket
Canada Goose Jackets This week issue may by itself almost cover Saudi Arabia current account deficit next year, which the IMF projects at $17.7 billion. Canada Goose Jackets
cheap Canada Goose Secondly, the bond will allow Saudi Arabia to slow the drawdown of its canada goose factory sale foreign assets to pay its bills, which is a focus of buy canada goose jacket speculative pressure on canada goose black friday sale the riyal. cheap Canada Goose
buy canada goose jacket Monica Malik, chief economist at Abu Dhabi Commercial Bank, estimated the monthly drawdown would slow Canada Goose sale to an Canada Goose Coats On Sale average $3 3.5 billion per month in 2017 from $6.8 billion per month so far this year. buy canada goose jacket
canada goose black friday sale Net foreign assets at the central bank totaled $554 billion in August, implying a heavy foreign bond issuance program canada goose uk outlet could buy the Saudis at least several more years of breathing space to reduce their economy dependence on oil exports. canada goose black friday sale
Canada Goose Outlet This week bond sale may also give a boost to the domestic economy. Lending rates have been rising this year as the drop in petrodollar inflows leaves banks canada goose store with less spare cash; this is hurting growth in the private sector. Canada Goose Outlet
Bankers canada goose clearance expect at least part of the $17.5 billion to be deposited with domestic banks in coming months, giving them more scope to lend and perhaps temporarily capping the uptrend in rates. Pressure on rates may ease further as big Saudi firms use the sovereign bond issue as a benchmark to raise funds abroad rather than domestically.
Banking shares were hit this year by fears of souring loans in the construction sector, where the government has delayed uk canada goose payments that it owes to companies for months, pushing some of the firms into severe difficulties.
canada goose store In a television interview broadcast just after the bond sale, Finance Minister Ibrahim Alassaf said payments to companies would uk canada goose outlet now rise. He did not elaborate, but Malik said some of the Canada Goose Parka bond proceeds might be used to support payments canada goose store.