Global stock markets are soaring and near record highs. Credit markets are exuberant and near record tight spreads and low yields; and volatility (bond, FX, and stock) has been suppressed to the point of non-existence. So why is it that just 3 months after Nigeria issued debt (in an oversubscribed auction) at a yield below that of Portugal's, Nigerian lender Diamond Bank has suspended the launch of its seven-year $550 million bond? It appears it's the Fed's fault! as the bond's marketers noted "pricing turbulence in the international debt market," in a presentation seen by Reuters on Tuesday. Still think the Fed will ever actually exit?
"Our efforts towards injection of Tier II capital have been put on hold following the persisting pricing turbulence in the international debt market," it said, ahead of a conference call with analysts on Tuesday to discuss its nine-month results.
Diamond's bond was marketed by France's BNP Paribas and Afrexim Bank as lead managers.
While that makes some sense, it is perhaps more an indication of investor anxiety about the future since Nigerian rates hve actually dropped notably in recent weeks as the world rallied off debt ceiling lows...
So is it concern that the flow will slow (meaning no more greater fool to spin this to) that has kept the money on the sidelines from buying Nigerian bank debt?