MENA Daily Fixed Income Report - 30 November

Transcription

1. MENA Daily Fixed Income Report – 30 November 2020 Kuwait Financial Centre “Markaz” News Updates Boubyan Bank Obtains Approval to Issue up to $500m in Sukuk – Boubyan Bank obtains approval from Kuwait’s Capital Markets Authority to issue AT1 sukuk of as much as $500 million or its equivalent in other currencies. Lender to draft prospectus if it decides to offer the sukuk (Source: Bloomberg) SAMA extends payment deferral program until Q1 2021-end – The Saudi Central Bank (SAMA) announced extending the deferred payment program to support the private sector until Q1 2021-end. The move comes as part of SAMA’s efforts to enable the financial sector to play its key role in supporting the private sector, particularly the micro, small and mediumsized enterprises, the central bank said in a statement. The decision also enables SAMA to maintain financial sector’s stability and support economic growth, in line with the Kingdom’s efforts to mitigate the COVID19 pandemic fallout on various economic sectors. The number of beneficiaries from the program, since its launch on March 14, 2020, exceeded 87,000 with SAR 77.3 billion deferred payments, the statement added. On Sept. 1, 2020, SAMA decided to extend the payment deferral program for 3 more months until December 14, Argaam earlier reported. (Source: Argaam) OPEC+ yet to find compromise on oil policy for 2021 – OPEC and allies led by Russia have yet to find a consensus on oil output policy for 2021, after an initial round of talks on Sunday and ahead of crucial meetings on Monday and Tuesday, four OPEC+ sources told Reuters. OPEC+, a grouping comprising members of the of Organization of the Petroleum Exporting Countries, plus Russia and others, had been due to ease production cuts from January 2021, but a second coronavirus wave has reduced demand for fuel around the world. OPEC+ is now considering rolling over existing cuts of 7.7 million barrels per day, or around 8% of global demand, into the first months of 2021, sources have said. Preliminary consultations on Sunday between the key ministers, including from OPEC’s leader Saudi Arabia and Russia, had not reached a compromise on the duration of the rollover. Sources have said talks were now focusing on extending cuts by three to four months, or on a gradual increase in output. Ideas of deeper cuts or a six-month rollover were much less likely, the sources said. “There is no consensus as yet,” one of the four sources said. A second source said: “There are many different ideas on the table... Also, a gradual increase (in production).” The main meeting was expected to begin at 1300 GMT on Monday. (Source: Reuters) GCC Sovereign Yields Sovereigns Maturity Sovereign Ratings Price ∆ (YTD %) 5.20 Yield % Abu Dhabi 2025 0.83 Abu Dhabi 2030 1.56 Abu Dhabi 2050 2.65 Bahrain 2026 3.47 Bahrain 2030 4.96 Bahrain 2047 6.27 Dubai 2029 2.58 KSA 2025 1.21 Price ∆ (YTD %) 6.71 9.78 KSA 2030 2.07 10.61 KSA A1 A-u A 21.21 KSA 2050 3.21 10.73 UAE Aa2 NR NR -1.66 Oman 2025 4.87 -3.70 AA AA Oman 2029 6.02 -4.90 Abu Dhabi Aa2 15.22 Qatar Aa3 AA- AA- -5.52 Oman 2048 7.35 -8.01 2.79 Qatar 2025 0.92 6.67 Bahrain B2 B+ B+ Oman Ba3 B+ BB- Egypt B2 B B+ Lebanon C SD RD Jordan B1 B+ BB- Turkey B2 B+u BB- Tunisia B2 NR Sovereigns Maturity Yield % Kuwait 2022 0.28 1.29 Qatar 2030 1.70 12.01 Kuwait 2027 1.16 5.76 Qatar 2050 2.75 24.19 Bonds and Sukuk Indices Yield % Duration (yrs) 1D ∆ (%) YTD ∆ (%) Bloomberg GCC FI Index 2.56 8.08 0.04 7.84 S&P MENA Bond and Sukuk Index 2.04 NA 0.03 8.82 Bloomberg Emerging Markets USD Index 3.70 6.80 0.16 4.94 Bloomberg Global Aggregate Index 0.86 7.42 0.23 7.74 Index Name Interbank Rates (%) KIBOR SAIBOR BHIBOR QATAR AEIBOR EURIBOR LIBOR 3 Months 30/11/2020 31/12/2019 1.4375 2.7500 0.8313 2.2314 2.2500 2.6667 1.2633 2.2500 0.4425 2.2086 -0.5280 -0.3830 0.2254 1.9084 6 Months 30/11/2020 31/12/2019 1.6875 2.9375 0.8800 2.2557 2.5333 2.7000 1.3458 2.3500 0.5667 2.1914 -0.5070 -0.3240 0.2574 1.9121 USD Swap Rates 1-Year 2-Year 5-Year 7-Year 10-Year 30-Year Yield % 0.2172 0.2523 0.4395 0.6181 0.8435 1.2522 Currencies 1D ∆ (bps) 0.00 0.03 -0.02 0.16 -0.05 -0.45 YTD ∆ (%) -87.7 -85.1 -74.6 -65.6 -55.5 -40.1 US Treasuries 2-Year 5-Year 10-Year 30-Year 12 Months 30/11/2020 31/12/2019 2.0000 3.1875 0.9488 2.3071 2.6833 2.8333 1.4771 2.5333 0.7411 2.2900 -0.4870 -0.2490 0.3304 1.9963 KWD SAR BHD QAR OMR AED USD 0.3052 3.7506 0.3771 3.6417 0.3850 3.6730 UK Guilts Yield % 0.15 0.37 0.84 1.57 1D ∆ (%) 0.00 0.00 0.02 0.07 Yield % -0.06 -0.02 0.28 0.83 1D ∆ (bps) 0.0000 0.0000 0.0053 -0.0082 0.0000 0.0000 YTD ∆ (%) -0.70 0.03 0.00 0.00 0.00 0.00 German Bunds 1D ∆ (%) -0.01 0.00 -0.07 0.09 Yield % -0.74 -0.79 -0.65 -0.19 1D ∆ (%) 0.00 0.01 0.00 0.11 Moody’s S&P Kuwait A1 AA- Fitch AA B Morocco Ba1 BBB- BB+ US Aaa AA+u AAA UK Aa2 AAu AA- China A1 A+ A+ USD 5Yr CDS 30-Nov 2020 31-Dec 2019 Kuwait 40.18 36.700 KSA 66.96 56.915 Abu Dhabi 36.19 36.090 Dubai 109.80 91.005 Qatar 37.14 36.705 Bahrain 284.67 175.995 Oman 384.73 234.400 Iraq 576.71 383.680 Egypt 363.51 277.420 Morocco 91.55 91.435 Turkey 381.06 282.130 US 12.28 10.810 UK 16.51 16.210 China 29.75 31.205 Japan 14.42 21.042 Germany 9.57 7.080 France 15.22 16.130 Source: Bloomberg This report has been prepared and issued by Kuwait Financial Centre K.P.S.C. (Markaz) , which is regulated by the Capital Markets Authority and the Central Bank of Kuwait. The report is owned by Markaz and is privileged and proprietary and is subject to copyrights. Sale of any copies of this report is strictly prohibited. This report can not be published. A number of sources which include Bloomberg, Zawya, and daily newspapers were utilized in the creation of this report.