Analysts often warn that investors should check the small print, read and re-read it under a strong light, when sovereigns resort to financial engineering to bypass conventional markets. And so it is that Nigeria’s US$5 billion Total Return Swap (TRS) with First Abu Dhabi Bank (FAB), already partially drawn at around US$1.5 billion, is the latest and largest example of an emerging market trend that blends liquidity relief with hidden leverage, margin-call volatility, and restructuring ambiguity. While officials in Abuja boast that the deal i
Analysts often warn that investors should check the small print, read and re-read it under a strong light, when sovereigns resort to financial engineering to bypass conventional markets. And so it is that Nigeria’s US$5 billion Total Return Swap (TRS) with First Abu Dhabi Bank (FAB), already partially drawn at around US$1.5 billion, is the latest and largest example of an emerging market trend
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