,
DINARESGURUS.BLOGSPOT.COM_________________

Thursday, July 2, 2015

MY LADIES UPDATE : IRAQ AND BONDS, 2 JULY

MY LADIES:  HUMM I JUST HEARD AN INTERESTING LINE

"GIVE A MAN A GUN AND HE'LL ROB A BANK" GIVE A MAN A BANK AND HE'LL ROB THE WORLD"

NOW DOES THAT RING TRUE...LOL..LOL..

JP:  Mary, if Iraq gets credit rating on July 7th does that not mean simultaneous international rate?  Or am I misinformed?

MY LADIES:  WELL JOHN HERE'S THE THING.....IF IRAQ GETS A CREDIT RATING FROM THE MAJOR REPORTING AGENCIES WITH OUT HAVING A CURRENCY THEY WILL BE THE FIRST I HISTORY TO DO SO.

NOW THIS WEEK WE ARE WATCHING AN AWFUL LOT OF FIRSTS...I JUST HOPE THAT IS NOT ONE OF THEM.
....
IQD NOVA:   WELL SAID ML!!!

JP:   Well then let’s pray Iraq does NOT make history!

AW:   Sovereign Credit Rating     AAA |  DEFINITION of 'Sovereign Credit Rating'

The credit rating of a country or sovereign entity. Sovereign credit ratings give investors insight into the level of risk associated with investing in a particular country and also include political risks. At the request of the country, a credit rating agency will evaluate the country's economic and political environment to determine a representative credit rating. Obtaining a good sovereign credit rating is usually essential for developing countries in order to access funding in international bond markets.

Read more: http://www.investopedia.com/terms/s/sovereign-credit-rating.asp#ixzz3ekE8dMEc

JP:   Mary and Nova, refresh my memory; do we know for sure that Iraq will be getting a international credit rating this go-around?  (feel free to hit me with the paper if I’m asking too many questions)

MY LADIES:  PAPER GETTING CLOSER...BUT NOT FOR ASKING QUESTIONS BUT FOR KNOWING BETTER.

YOU ACT AS IF IRAQ HAS BEEN ACCURATE WITH EVERYTHING WE HAVE READ...

IF IT COMES OUT OF IRAQ IS ALWAYS SUBJECT TO CHANGE.

PrincessDD:  So the bonds are coming up in August so they will get their credit rating this month so how do those 2 work together?

AW:   Now,.........make the connection between the rating and the attempt to market bonds on the international bond market.

MY LADIES:  THE ONLY CONNECTION TO THE BONDS AND A CREDIT RATING IS THE INTEREST RATE AND ABILITY TO TRADE ON THEIR OWN

BUT IRAQ HAS SOLD SOVREIGN DEBT TWICE BEFORE.

THE FIRT TIME WAS 2009 AND THEY WERE AT 6% FOR 10 YEARS THROUGH JP MORGAN

AND THE SECOND TIME WAS IN 2013 AND THEY WERE 5 YEARS ALSO SOLD THROUGH JP MORGAN AT 8%

SO WE DON'T WANT TO GET CAUGHT UP IN BOND SALES...

AW:  Unless, .......that the trading of the IQD on the world currency markets is a precursor to entering the international bond markets...................just thinking.........lol duck!!!!~!

MY LADIES:  YOU'RE RIGHT AW...THEY MET WITH THIS TIME WITH CITI AND DUETCHE RIGHT??

THEY PUT THEM OFF NOW FOR THE PAST 4 MONTHS RIGHT??

ZEBARI SAID HE WANTED A BETTER RATE SOMETHING IN THE 2-3% RANGE RIGHT??

AND THE CURRENT BOND MARKET IS ABOUT TO HAVE A BIG HICCUP

SO IT'S IN THEIR BEST INTEREST TO KEEP PUTTING OFF UNTIL THEY CAN DO IT ON THEIR OWN AT A GOOD DISCOUNT.
IQD NOVA:  IMO WE WILL NOT SEE NON ACCREDITED INVESTORS PLAYING IN IRAQS BONDS TILL THE IQD IS FREE AND ITS GOVERNMENT HAS A CREDIT RATING.

MY LADIES:  RIGHT...I AGREE..THEY HAVE MOVED FROM MARCH ALL THE WAY INTO AUGUST…. EVEN THE LAST 2 SALES WERE DONE AS A PACKAGE DEAL WRAPPED UP WITH MANY OTHER COUNTRIES..

I'M NOT SURE HOW MANY TAKERS WOULD HAVE LINED UP PREVIOUSLY JUST FOR IRAQ SPECIFIC BONDS……..THEY SOLD HIGH ON THE HIGH RISK MARKET...

Sager:  Nova, if I may, what constitutes a non accredited investor?

IQD NOVA:  SAGER, YOU ARE.YOUR NOT IN THE INVESTMENT BIZ NOR AN INSTITUTION.

Sager:  I assumed that, but wanted your confirmation

AW:  INVESTOPEDIA EXPLAINS 'Sovereign Credit Rating'

Another common reason for obtaining sovereign credit ratings, other than issuing bonds in external debt markets, is to attract foreign direct investment. To give investors confidence in investing in their country, many countries seek ratings from credit rating agencies like Standard and Poors, Moody's, and Fitch to provide financial transparency and demonstrate their credit standing.

Read more: http://www.investopedia.com/terms/s/sovereign-credit-rating.asp#ixzz3ekIsgMGc

So,......the need for a credit rating is not just the bonds.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.