Barometer Bond for Kurdish Oil Flows Falls to Record Low

Bonds linked to Kurdistan’s oil exports have fallen to a record low amid escalating tensions between the semi-autonomous Iraqi region and the federal government in Baghdad. Securities due in 2022 that were issued to help fund Glencore’s prepayments for Kurdish oil have slumped 6.7 percent since late September, much of the retreat coming in recent days as forces from the south seized oil fields that had been run by Kurds. While the bonds may be at a record low, they’re still close to par at 99.3 cents on the dollar, suggesting investors retain faith in Kurds’ ability to get revenue from oil sales.

— With assistance by Javier Blas

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