While mostly taking place behind the scenes, it has been a rather calamitous month for developments in Saudi Arabia: one day before the record, inaugural $17.5 billion Saudi bond priced, news broke that for the first time, a member of the Saudi Royal Family, had been executed for murder in what until then had been an unprecedented fall from grace for a member of the chosen royal elite.
The very next day, as virtually everyone in the bond market knows, Saudi Arabia priced a massively oversubcribed – the first of its kind – international bond issue, taking advantage of rising oil prices on the back of Saudi jawboning about an OPEC production freeze deal which now appears unreachable (oil is down 4% as of this moment). The deal was seen by most as a major success for the Kingdom, one whose proceeds the local authorities had started to spend just as soon as the wire transfers were executed to get thousands of government staffers back to work.
So it is surprising that less than 2 weeks after this historic bond sale, moments ago we learned thatthe long-serving Saudi finance minister had been relieved of his post on Royal orders.
This post was published at Zero Hedge on Oct 31, 2016.