The first six months of 2014 saw a rebound in the Lebanese safe assets market. Lebanon kept on suffering the local and regional instabilities in the first half of the year that heavily burdened its whole economy. Despite the challenges, Lebanese Eurobonds found their positive path again in 2014 amid the chaotic situation of the country. The BLOM Bond Index (BBI) revealed a 2.33% year-to-date (y-t-d) uptick to settle at 108.10 points, up by 5.22% from 2013’s level of 102.74 points.
Some positive political and security improvements were behind the progress of the Lebanese safe assets market. After 10 months of political stalemate, the Lebanese new Cabinet was finally formed in February spurring a positive market sentiment on the Eurobonds’ market. The security plan implemented by the new Cabinet also boosted Eurobonds’ activity in April and May despite the failure to elect a president and the state of presidential vacuum that did not deter investors’ interest.
2014-07-Review of the Lebanese Eurobonds’ Market in the First Half of 2014