qatar abu dhabi luring bond investors amid europe crisis
Last Updated : GMT 18:26:54
Arab Today, arab today
Arab Today, arab today

Qatar, Abu Dhabi luring bond investors amid Europe crisis

Arab Today, arab today

Arab Today, arab today Qatar, Abu Dhabi luring bond investors amid Europe crisis

London - Arabstoday

Qatar, the world’s fastest growing economy, and Abu Dhabi are luring bond investors keen to cut their investment in markets closer to Europe’s debt crisis. The average yield on Gulf bonds fell three basis points, or 0.003 of a percentage point, this month to 4.719% on Monday, 12 basis points off the lowest ever level reached on August 2, the HSBC/Nasdaq Dubai GCC Conventional US Dollar Bond Index shows. Yields on Qatar’s sovereign dollar-denominated bonds touched record-lows last week. Sovereign bond yields of Hungary, a European Union member, had their biggest weekly jump since April and Polish debt yields also rose, according to data compiled by JPMorgan Chase & Co. “I have started in the last three weeks to reduce my exposure to Eastern European countries” and buy into “fundamentally strong countries with solid public finances,” Sergey Dergachev, who oversees $8.5bn in emerging-market debt at Union Investment Privatfonds in Frankfurt, said by e-mail on Monday. Dergachev said he has been buying Qatar and Abu Dhabi bonds. The yield on Qatar’s 6.55% sovereign bonds due in 2019 dropped three basis points, or 0.03 of a percentage point, last week and touched 3.529% on Thursday, the lowest since the debt was issued in April 2009. The yield rose six basis points on Monday to 3.647%. The yield on Hungarian bonds jumped 30 basis points, the biggest weekly jump since the five days ended April 29, and Polish debt yields climbed 11 basis points, according to data compiled by JPMorgan Chase & Co. The yield on government bonds of Russia, which counts Europe as its biggest trading partner, rose 14 basis points over the past two days. Propelled by natural gas exports, the Qatari economy may expand 20% this year after growing 16% in 2010, the International Monetary Fund said in April. Abu Dhabi, the capital of the UAE, holds 7% of the world’s proven oil reserves. Crude, while down 14% in August on concern a global recession will slash energy demand, will rebound by the end of the year, according to analysts. Daniel Broby, the London-based chief investment officer at the Silk Invest Ltd, said his firm hasn’t sold any of its Middle East debt holding. Silk Invest has cash that it “will soon put to work,” he said in an e-mailed response to questions yesterday. The global turmoil “makes our markets look more interesting because in aggregate, the GCC and frontier markets in general have greater reserves than outstanding debt.” Bonds from the region and North Africa are attracting capital from advanced countries, said Rawad Hakme, the Dubai-based co-manager of fixed income at the UAE unit of EFG- Hermes Holding SAE, the biggest publicly-traded Arab investment bank. “Investors will continue to overweight emerging markets in general, and the Middle East and North Africa in particular, given the weaker fiscal positions in developed markets,” Hakme said by e-mail yesterday. “The safe haven papers are in Abu Dhabi and Qatar.” The yield on Qatar’s 5.25% dollar notes maturing in January 2020 touched a record low last week at 3.686%, according to data compiled by Bloomberg. The yield rose two basis points on Monday to 3.808%. The yield on Abu Dhabi’s 6.75% bonds maturing in April 2019 gained 13 basis points on Monday to 3.72%, after hitting an all-time low of 3.655% on Thursday, the data show. The rally may only be sustained should oil prices rebound, said Anthony Simond, who helps manage $7bn in emerging- market debt, including Qatari sovereign bonds, at Aberdeen Asset Management in London. “The price of oil makes a lot of difference, so if we see another spike there, that’s obviously good news for the likes of Qatar and Abu Dhabi, and they could see further inflows,” he said. The oil price needed for Gulf countries to fund budget expenditure has more than doubled since 2006 to $77 a barrel, according to Deutsche Bank AG. Oil tumbled as much as 7.7% on Monday to $80.17 a barrel, the lowest intraday level since November. Prices plunged 9% last week. Analysts are predicting a recovery, with prices in New York rising to $100 a barrel in the fourth quarter, according to the median of 32 estimates compiled by Bloomberg. Credit default swaps insuring Qatari government debt against default for five years climbed one basis point on Monday to 97, according to data provider CMA, which is owned by CME Group Inc and compiles prices quoted by dealers in the privately negotiated market. Abu Dhabi default swaps advanced one basis point on Monday to 96. Eastern Europe suffers most from eurozone jitters, whereas the GCC is both macroeconomically solid and its bonds have strong local sponsorship,” Union Investment’s Dergachev said, referring to the Gulf Cooperation Council. “I have not sold any bonds out of the GCC and I have purchased in Asia and the GCC both conventional bonds and sukuk,” he said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

qatar abu dhabi luring bond investors amid europe crisis qatar abu dhabi luring bond investors amid europe crisis

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

qatar abu dhabi luring bond investors amid europe crisis qatar abu dhabi luring bond investors amid europe crisis

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday