This page has been archived and commenting is disabled.

Dubai Sovereign CDS Surges 130 bps As Dubai World Seeks Debt Standstill

Tyler Durden's picture





 

Trader commentary:

The widening of CDS spreads on Greek Sovereign debt has caught some attention and now Dubai CDS spreads are on the move: Commentary on Dubai from the EM guys...Dubai in focus as they do another $5b local tranche in the $20b Abu Dhabi program, then ask for extension in Nakheel maturities for 5 months. Very strange. Thought whole point of issuing the bonds was to pay for the Nakheel debt. Dubai CDS +130bps from o'night level of 318 ... seems to be hitting the European markets now.

Sequential popping of bubbles to commence shortly.

Historical Dubai CDS below:

h/t Macallan 18

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 11/25/2009 - 10:38 | Link to Comment Anonymous
Wed, 11/25/2009 - 10:47 | Link to Comment The Axe
The Axe's picture

Call the neighbors and tell them to open up the oil faucet! 

Wed, 11/25/2009 - 10:49 | Link to Comment jmf
jmf's picture

Moin from Germany,

they are trying everything to please their new overlords....

Until last month, a billboard at one of Dubai’s busiest roundabouts featured one photo, of Dubai ruler Sheikh Mohammed Bin Rashid Al Maktoum. The new billboard says “Long live our Emirates union” and also shows United Arab Emirates President Sheikh Khalifa Bin Zayed Al Nahyan.

 

 

Wed, 11/25/2009 - 11:10 | Link to Comment A Man without Q...
A Man without Qualities's picture

I met a traveller from an antique land
Who said: "Two vast and trunkless legs of stone
Stand in the desert. Near them on the sand,
Half sunk, a shattered visage lies, whose frown
And wrinkled lip and sneer of cold command
Tell that its sculptor well those passions read
Which yet survive, stamped on these lifeless things,
The hand that mocked them and the heart that fed.
And on the pedestal these words appear:
`My name is Ozymandias, King of Kings:
Look on my works, ye mighty, and despair!'
Nothing beside remains. Round the decay
Of that colossal wreck, boundless and bare,
The lone and level sands stretch far away". 

 

I heard about a guy from the UK who had spent his life savings to pay the deposit on a couple of houses in Dubai.  He had to buy off plan and pay cash for 20%.  More than a year later, and the construction of the houses had not started, so he attempted to cancel the contract on the grounds that the developers were not able to proceed at per the agreement.  The developer pointed out that they were ready to go, but the problem was the island the property was to be built on, had not been created yet. A South Sea Bubble for the 21st Century...

 

Wed, 11/25/2009 - 10:56 | Link to Comment Anonymous
Wed, 11/25/2009 - 10:56 | Link to Comment john_connor
john_connor's picture

The dominoes are falling, first slowly, then an avalanche.

Wed, 11/25/2009 - 11:05 | Link to Comment Anonymous
Wed, 11/25/2009 - 11:57 | Link to Comment john_connor
john_connor's picture

wtf?

Wed, 11/25/2009 - 13:06 | Link to Comment Anonymous
Wed, 12/01/2010 - 01:26 | Link to Comment Karston1234
Karston1234's picture

Round the decay Of that colossal wreck, boundless and bare, The lone and level sands stretch far away". online high school diploma | online ged | online degrees

Wed, 11/25/2009 - 11:18 | Link to Comment Anonymous
Wed, 11/25/2009 - 12:09 | Link to Comment Assetman
Assetman's picture

Oh... just wait until US CDS spreads pop... hoo-boy!

Wed, 12/01/2010 - 01:27 | Link to Comment Karston1234
Karston1234's picture

I learned a lot from reading this.
online associate degrees | online bachelor degrees

Wed, 11/25/2009 - 11:22 | Link to Comment SV
SV's picture

Tyler - Help some people out here with a poke or two at how this exposure is going to manifest.  I'm thinking like a SWAT analysis in terms of players of an disorderly unwind.

Wed, 11/25/2009 - 11:34 | Link to Comment svendthrift
svendthrift's picture

"Dubai Sovereign CDS Surges"

Would someone kindly explain to me 1) why the surge 2) what this means?

Wed, 11/25/2009 - 12:04 | Link to Comment Assetman
Assetman's picture

While there might be something unique going on in Dubai, the world is now entering a currency devaluation competition. 

Some countries will not be affected much by this (i.e. Canada); others will affected a lot, as soverign debt is perceived to be more risky (greater chance of default).

You can start with Greece and Dubai... the U.S. is also in this bucket, due to the massive sovereign that still needs to be financed.

The game is on... and it's going to be crazy.

Wed, 11/25/2009 - 12:22 | Link to Comment svendthrift
svendthrift's picture

Thanks.

Wed, 11/25/2009 - 15:59 | Link to Comment Steak
Steak's picture

The bloomberg story about this guy:

http://www.bloomberg.com/apps/news?pid=20601110&sid=a.LazCgxcywM

The state-controlled company will ask all creditors for a “standstill” agreement as it negotiates to extend maturities, including $3.52 billion of Islamic bonds due on Dec. 14 from its property unit Nakheel PJSC, the builder of palm tree-shaped islands, Dubai’s Department of Finance said in an e-mailed statement. Moody’s Investors Service said it would consider the plan a default should bondholders be forced to accept the terms.

Wed, 11/25/2009 - 12:16 | Link to Comment johngaltfla
johngaltfla's picture

There's your gold move. This is a Middle Eastern/Asian driven panic. If Dubai World goes, so goess Citi and 1/2 the London and Hong Kong banking system in one shot.

 

Not to mention the House of Saud is not in the best of financial shape and could NEVER absorb this size of a hit.

Wed, 11/25/2009 - 14:04 | Link to Comment Anonymous
Wed, 11/25/2009 - 12:45 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

Soon, there will be only ONE question reverberating around the world:

GOT GOLD?

Wed, 11/25/2009 - 13:09 | Link to Comment Anonymous
Wed, 11/25/2009 - 14:34 | Link to Comment Anonymous
Wed, 11/25/2009 - 13:33 | Link to Comment Anonymous
Wed, 11/25/2009 - 13:57 | Link to Comment The Rock
Wed, 11/25/2009 - 15:00 | Link to Comment Anonymous
Wed, 11/25/2009 - 15:56 | Link to Comment Anonymous
Wed, 11/25/2009 - 18:06 | Link to Comment j0sh1130
j0sh1130's picture

i find the whole dubai debt situation hilarious.  as a foreinger, if i were to go to dubai and default on a loan or credit card i could be held in debtors prison for years.  but as a govt, they can default on loan payments and try to force workouts that favor them with no fear of the corporate executives (royal family) ending up in the slammer.  it amazes me how blatant the distinction is.

Fri, 11/27/2009 - 07:36 | Link to Comment Anonymous
Tue, 06/21/2011 - 17:55 | Link to Comment spritch
spritch's picture

Hey guys can you tell me something. If the whole world is in debt why don't we just all declare bankruptcy and call it even?

Webcam Model Wanted

Do NOT follow this link or you will be banned from the site!