New frontier

摘要

Investors are always on the lookout for new credits. But boundaries really would be pushed if the Kurdistan Regional Government entered the capital markets. Officials from the government were in London last week, tentatively exploring their options with fixed-income accounts. EM investors are used to analysing opportunities from frontier markets, but even by these standards the KRG is one credit that will require extensive due diligence. While the government potentially sits on a quarter of Iraq's oil reserves, its fight against Islamic State militants and the fragility of its relations with the Baghdad government mean several questions need answering before investors are likely to stump up funds.