Dubai, which roiled markets with its request to delay $25 billion of debt payments in 2009, faces the prospect of rising borrowing costs if it succeeds in a bid to hold the Expo 2020 World Fair, Bank of America Corp. said.
The Federal Reserve and four other U.S. financial regulators said they agreed to coordinate supervision of federally insured banks with assets exceeding $10 billion under the Dodd-Frank Act in a move that will tighten supervision.
Downgrades of Dubai’s biggest banks by Moody’s Investors Service last week show that the lenders haven’t done enough to address the bad loans that piled up following the emirate’s real estate crash four years ago.
Ahmad Hamad Algosaibi & Brothers Co. plans to make a new offer on $7.2 billion of debt to creditors including BNP Paribas SA and Standard Chartered Plc as it seeks to bounce back from the Middle East’s biggest corporate default.
Oman’s Blue City, a $20 billion real estate project central to the country’s economic transformation, is on the brink of liquidation and its fate may hinge on talks between bondholders trying to salvage their investment.
Islamic bonds gained for a fifth month, sending yields to the lowest levels since 2005, as faster growth in the Persian Gulf lured investors who expect new sales to recover after falling 27 percent this year.