Posted by the islands economy on 18-11 to 2018
Despite the earlier applications on the # 39; This year, three Saudi banks are aiming to give dollar debt instruments, spectators are surprised to say that these mechanisms have not been brought out when the favorable opportunity came in the third quarter of this year , the expert said a band. "Depending on what is happening inside the banks, the reason for delaying these issues is due to the application of a zakat. This is a case This affects the publishing case in relevant relevant leaflets. In addition, there is an uncertainty about the time to file this file to increase its likelihood to confirm those risks (which increases the cost of financing). The reason why these banks are going to debt markets despite how abundant the bank wants to raise capital levels through instruments that comply with the requirements of Basel III and in particular with the capital of tier II. Another purpose is to support the bank capital base expecting to grow "belief" to come forward from governmentalization to stimulate economic growth, increase demand bank loans.
The danger of the "new truth"
"The food is for debt advocates in the department, but the problem is related to new challenges that increase the cost of financing for companies," said a specialist in a market in a market debt and credit. It is the new fact that we are looking at applicants; The prices of their new debt tools at a price price compared to the product bend; of their secondary market for the distributions recorded on international markets. This is the result of market conditions and levels of interest are in place; negatively affect debt device prices by trading them at discounting their nominated value.
"The best option is to cancel the questions to their first season," Kheniffer said. The reason is that investors will benefit from the "diversion" to "critical newspapers" as well as geopolitical events in the region that are over 100 years old (for new investors are not yet familiar). Then they will go through these contracts according to their benefit and they will; need unparalleled price (price) on their case by doing so; Oman's superintendent was awarded last October.
Understand that some companies can Chamais has to think that they are generous to investors when they expose their debt instruments this year
The influence of black gold
"In terms of the impact of oil prices moving to debt markets for Campa companies, this relationship is declining due to the emergence of other factors that affect the division. , the impact of oil prices will return to an interval when prices are less than 40 or more than $ 90 barrel.
"Saudi Arabia is marked because there are many benefits, worth billions of dollars," Khenifir said. However, some note that these attributes are not intended to support local debt markets (particularly with development projects). I think this is possible if the Waqf property has a high credit rating. Therefore, the Scheme includes a "third-party commitment" for applicants who are, is committed to managing the revenue of the case to attack development projects. This total commitment would reduce the prices of these devices in terms of low credit levels.
Government machine prices
"When we compare the query jobs in September and August, the 14 percentage points of each section increase the average level, as it is known, a government publications price machine change through the use of an auction platform where primary dealers enter special prices that do not exceed the special price levels of the office of the debt. As we have seen that there is a rapid increase in the level of seasonal results paid to investors, after the conversion of the price machine. Amongst the reasons are the elevations registered in the US Treasuries (especially without a bolt of active eyes in the market as a result of a limited trade on those resources).