denotes premium content | Jan 6 2009 
Regular
posted 29 May 2003 in Volume 6 Issue 8
Indicative forfaiting rates
The analysis from Standard Bank London:
In the aftermath of the quick resolution to the Iraq conflict, a more optimistic tone to financial markets prevails, although traditional forfait investors still largely appear to be focusing on the short end for now.
Meanwhile, spreads quietly continue to contract for most country risks; the most significant increase in activity was in Brazilian names with a revival of buying interest – mostly for 12-month paper, but some longer paper also found buyers looking for higher yields.
In addition, there is evidence of appetite for Turkish risk improving, with lines among traditional investors returning for one-year tenors, and others seeking to establish limits for top bank names.
For other countries, a renewal of interest in Middle East names was detected, Iran spreads appear to have peaked and are now declining, and demand for Eastern European paper – Kazakhstan in particular – remains strong.
Generally, the secondary market is experiencing a shortage of quality transactions, but a pick-up in enquiries from exporters provides a positive backdrop.
