Improving Lebanese Eurobonds in the Past 2 Weeks
The Blom Bond Index (BBI) rose by 1.97% over the past 2 weeks to stand at 102.7 points by January 4, 2018. The BBI outperformed the JP Morgan Emerging Markets’ Bond Index (EMBI) which registered a 0.55% rise to stand at 809.88 points.
The BBI was boosted by higher demand on the Lebanese Eurobonds maturing in 5 years (5Y) and 10 Years (10Y) since their yields slid from the 7% and 7.50%, recorded two weeks earlier, to 6.52% and 7.12%, respectively.
As such, the 5Y and 10Y spreads between the Lebanese Eurobonds and their US comparable narrowed from 474 basis points (bps) and 502 bps on December 21 to 425 bps and 466 bps, respectively.
Demand for safe-haven US treasuries steadied in the past two weeks as investors are not expecting a rate hike in the end of January. The yield on the 5Y US treasuries rose from 2.26% to 2.27% and that of the 10Y US treasuries dropped from 2.48% to 2.46%.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 04/01/2018 | 21/12/2017 | |
| Lebanon | 480 | 521 |
| KSA | 90 | 92 |
| Dubai | 153 | 153 |
| Brazil | 148 | 165 |
| Turkey | 161 | 169 |
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 04/01/2018 | 21/12/2017 | Change | 04/01/2018 | 21/12/2017 | Change bps |
| 23/04/2019 | 5.5 | 100.31 | 99.5 | 0.81% | 4.77% | 5.89% | -112 |
| 20/05/2019 | 6 | 100.38 | 100.13 | 0.25% | 5.19% | 5.90% | -71 |
| 28/11/2019 | 5.45 | 101 | 99.13 | 1.89% | 5.23% | 5.93% | -70 |
| 09/03/2020 | 6.375 | 100.13 | 99.88 | 0.25% | 5.37% | 6.43% | -105 |
| 14/04/2020 | 5.8 | 101.13 | 98.5 | 2.67% | 5.81% | 6.50% | -69 |
| 19/06/2020 | 6.15 | 99.88 | 99 | 0.89% | 5.85% | 6.59% | -74 |
| 12/04/2021 | 8.25 | 100.25 | 104.38 | -3.96% | 6.04% | 6.75% | -71 |
| 04/10/2022 | 6.1 | 105.75 | 97 | 9.02% | 6.27% | 6.84% | -57 |
| 27/01/2023 | 6 | 98.63 | 95.75 | 3.01% | 6.44% | 7.00% | -57 |
| 22/04/2024 | 6.65 | 97.63 | 97.38 | 0.26% | 6.56% | 7.17% | -61 |
| 04/11/2024 | 6.25 | 99.13 | 94.88 | 4.48% | 6.82% | 7.21% | -39 |
| 03/12/2024 | 7.00 | 96.63 | 98.63 | -2.03% | 6.87% | 7.25% | -38 |
| 26/02/2025 | 6.20 | 100.5 | 94 | 6.91% | 6.91% | 7.29% | -38 |
| 12/06/2025 | 6.25 | 96 | 94 | 2.13% | 6.92% | 7.31% | -39 |
| 28/11/2026 | 6.60 | 96 | 95.25 | 0.79% | 6.95% | 7.33% | -39 |
| 23/03/2027 | 6.85 | 97.13 | 96.38 | 0.78% | 7.04% | 7.39% | -36 |
| 29/11/2027 | 6.75 | 98.5 | 95.13 | 3.54% | 7.07% | 7.45% | -38 |
| 03/11/2028 | 6.65 | 97.5 | 93.5 | 4.28% | 7.10% | 7.54% | -43 |
| 26/02/2030 | 6.65 | 96.25 | 91.88 | 4.76% | 7.15% | 7.69% | -54 |
| 22/04/2031 | 7.00 | 94.63 | 93.88 | 0.80% | 7.32% | 7.74% | -42 |
| 23/03/2032 | 7.00 | 96.75 | 92.88 | 4.17% | 7.39% | 7.84% | -45 |
| 02/11/2035 | 7.05 | 96.25 | 92.13 | 4.47% | 7.43% | 7.88% | -45 |
| 23/03/2037 | 7.25 | 95.75 | 92 | 4.08% | 7.48% | 8.07% | -59 |
