Stronger Demand for Lebanese Eurobonds Over the Past Week

With the expected positive developments during the past week, the BLOM Bond Index (BBI) went up by 0.79% to 103.88 points, outperforming the JP Morgan Emerging Markets’ Bond Index that lost 0.09% to 675.67 points.

Yields on the 5Y and 10Y Lebanese Eurobonds dropped from 6.46% and 6.85% to 6.15% and 6.69%, respectively.

Yields on the 5Y and 10Y US treasuries inched down from 1.74% and 2.33% to 1.68% and 2.24%, respectively.

Consequently, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable tightened from last week’s 472 bps and 452 bps to 447 bps and 445 bps, respectively.

5 Year Credit Default Swaps, MENA Region

  10/12/2015 03/12/2015
Bid Ask Mid Bid Ask Mid
Lebanon 413 433 423 408 428 418
KSA 137 146 141 151 158 155
Dubai 194 202 198 194 202 198
Brazil 471 479 475 419 426 423
Turkey 288 291 289 252 256 254

 

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