Backed Into A Corner -- August 26, 2020

Posted earlier:

Backed into a corner:

• Kuwait lacks liquidity to cover state salaries beyond October, 2020; 
• Iraq on the verge of being unable to pay state salaries;
• at $40/bbl, oil is priced at 50% of what the Saudi budget requires (and on top of that, exports are decreasing)
• XOM booted from Dow 30; has been in the Dow 30 from the very beginning -- different names, of course, over the years
  

Add another: Abu Dhabi returns to debt market with longest Gulf bond ever.

The capital of the United Arab Emirates raised $5 billion from a three-part offering, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. Abu Dhabi offered a yield of 65 basis points over U.S. Treasuries on $2 billion of notes due September 2023, 105 basis points for its $1.5 billion in long 10-year securities and 2.7% for $1.5 billion in bonds due in half a century, which will be its longest yet. Final pricing on all three tranches was lower than initial guidance.