, Columnist
The Saudis Can't Just Throw Their Bond Market Weight Around
The kingdom has to respect the power of the Fed.
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Saudi Arabia could return to the international bond market this month for a third time, once it has wrapped up refinancing a syndicated loan. The kingdom's last two jumbo issues went well, but this time is different.
The Federal Reserve will most likely raises rates at its March 20-21 meeting, and funding costs are rising along with U.S. Treasury yields. Credit spreads are widening also, notably in the shorter maturities for Saudi debt.