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Surge Of Nakheel Bondholders Crashes Restructuring Update Call; Main and XO CDS Update
Panic settles in as the update call for Nakheel bondholders crashes and has to be postponed due to unprecedented and unexpected surge of participants. From Reuters:
A conference call for bond
holders of Dubai-owned property firm Nakheel [NAKHD.UL] was
postponed on Thursday after phone lines were overwhelmed by too
many people calling in.
The call was to establish the size of the bondholder group
and to appoint legal advisers to liaise with Dubai World, which
is asking to delay payments on debt held by its subsidiary
Nakheel.
Organisers said they had a full list of bond holders, after
being asked by one investor who said he had become a bond holder
in the last few hours.
Nakheel's Islamic bond prices extended losses, falling 14
points to 70, their lowest since February, according to Reuters
data.
In terms of credit exposure, Europe was ablaze with substantial widening across the board in Main and XO.
Today's biggest absolute movers in Main were Hannover Rueckversicherung AG (+10bps), Swiss Reinsurance Company (+5.56bps), and ArcelorMittal (+5.5bps) in the wideners, and PPR (-3.61bps), Gas Natural SDG SA (-3bps), and Deutsche Bahn AG (-1bps) in the tighteners. Today's biggest percentage movers in Main were Hannover Rueckversicherung AG (+21.51%), Allianz SE (+8.97%), and Muenchener Rueckversicherungs AG (+6.66%) in the wideners, and Gas Natural SDG SA (-3.75%), JTI (UK) Finance PLC (-2.88%), and PPR (-2.21%) in the tighteners.
In the names of the XOver index, today's biggest percentage movers were Havas SA (+11.14%), Porsche Automobil Holding SE (+10.46%), and Lafarge SA (+7.27%) in the wideners, and Seat Pagine Gialle SpA (-10.51%), NXP b.v. (-7.93%), and DSG International plc (-6.66%) in the tighteners. The largest absolute movers in XOver were TUI AG (+41.1bps), Codere Finance SA (+39.67bps), and Ineos Group Holdings plc (+31.09bps) in the wideners, and Seat Pagine Gialle SpA (-220.01bps), NXP b.v. (-157.07bps), and DSG International plc (-57.7bps) in the tighteners.
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bad week to stop sniffing glue
They had it coming, Nakheel was probably the craziest developer even by Dubai standards.
Will the dollar's Plunge Enforcement Team be back at their desks on Maiden Lane tomorrow?
Surely the HALs are never powered down and the pilots have VPNs to save having to make emergency trips back to the office.
-
Let's listen in on Obama's Thanksgiving morning conference call:
"The world's stock markets are crashing!"
"Bernanke, Geithner, Summers, Goldman Sachs, JP Morgan, and whoever else is responsible for this s%$$, get your a%$#$ back to work now!!!! Your Thanksgiving is cancelled you mother &$%$%$#"!!!!!
Happy Thanksgiving everyone!!!!:))
And people wonder why our Great Leader started doing crack again.
Boy...Today would be the prefect day for CNBC to rerun all the clips from Aron Burnett in Dubai a month of so ago.
All in favor please signify by the uplifted middle finger.
:>]
"Turn those machines back on!"
I'm kicking myself. I seriously thought about taking a large short position with the 3x ETFs Wed when I first heard the Dubai news. But I didn't 'cause I just *knew* the PPT Boys would be in serious damage control mode on Friday. We shall see....
Yeah, I have the same bad feeling too. Watch out for the early pumping team a few hours before market open on Friday. The last thing they want before shoppers head out the door is news that the DOW is down 500 points.
As you probably know, margin rules for ETF's will change on Tuesday such that a 3x will require a 3x reserve.
Look for a big shake up as retail investors with shorts
will be forced to cover in advance of a margin call due to the new requirements and then all those hedge funds that have been sitting on the sideline flood in to fill the void.
Wait a sec... If reserves will be required, isn't it just as likely that long positions will be liquidated?
If you need reserves, I don't see how that entails covering short positions any more than it affects selling equity positions.
Speaking of leveraged ETFs, Zecco was kind enough to send out a reminder about an increase in margin requirements:
http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/noti...
No need to worry, the $4.65 billion investment in the Las Vegas City Center project is already fully funded with no outstanding commitments! $4.65 billion!
http://online.wsj.com/article/SB1000142405274870449880457455775289088794...