It said it had begun discussions with creditors on $26 billion of its debt that would include restructuring about $6 billion in bonds issued by its real estate arm, Nakheel.
About $3.5 billion of the bonds come due on Dec. 14, and how that issue is resolved is viewed as the litmus test for how Dubai World will deal with the rest of its debt woes.
Can you profit from Dubai's pain?
Fast Money’s Tim Seymour thinks you can and suggests the weakness in Dubai is an opportunity -- in disguise.
“As you look around the emerging world not everybody is facing these types of credit issues. This is a great opportunity to buy the weakness, “ says Seymour.
Because he believes the global recovery remains in tact -- because of that fundamental belief -- he’s a buyer of sovereign debt on the pullback.
Now - how can you play sovereign debt? The Ambassador suggests the following:
Morgan Stanley Emerging Markets Domestic
Morgan Stanley Emerging Markets Debt Fund
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Trader disclosure: On December 2nd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (SU), (GOOG) ; Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Calls; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (PLCE), (MSFT), (WMT), (PDE), (RIG), (TGT); Finerman's Firm Is Short (IJR), (IWM), (MDY), (SPY), (USO), (UNG; Grasso Owns (AAPL), (BA), (BAC), (C), (WMT), (V); Najarian Owns (AAPL) Call Spread; Najarian Owns (BRCD) & (BRCD) Calls; Najarian Owns (INTC) & Short (INTC) Calls; Najarian Owns (DELL) Calls; Najarian Owns (DE) Call Spread; Najarian Owns (FCX) Call Spread; Najarian Owns (INTC) & (INTC) Calls; Najarian Owns (UAUA) Call Spread
For Steve Grasso:
Stuart Frankel Owns (NWS),
Stuart Frankel Owns (PDE)
Stuart Frankel Owns (SDS)
Stuart Frankel Owns (YHOO)
Stuart Frankel is Short (QQQQ)
Funds Managed By Todd Gordon Are Short Eur/ Dollar
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