The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Back in the fold?

Edited by Brian Caplen

News from Algeria tends to focus on the political violence and economic sabotage caused by Islamic opposition groups. Recently, however, the country's high-yielding debt has also been attracting attention. Following the long-awaited conclusion of a rescheduling agreement with the London Club of commercial bank creditors in August, Algeria has become a beneficiary of the increasing thirst for exotic risk.

Debt traders see the London Club accord as a vote of confidence by creditors and it has triggered interest in Algerian paper. "The deal has come at a good time for Algeria, coinciding with a time when investors are looking to diversify their risk," says Bradley Wickens, an analyst at Banque Indosuez in London. "We've seen a huge jump in liquidity for Tranche A [the most actively traded paper]. Now Euro brokers always have a price on the screen, which wasn't the case two months ago. The bid/offer spread has tightened from 200 basis points to 75bp."

Says Redwan Merouani, a director of UBAF Asset Trading in Paris: "Emerging market debt has moved up sharply since March. When more liquid instruments become too expensive, there is always a need for new frontiers.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree