Gulf bonds are a safe haven for Asian investors

by **claud39** Fri Jan 11, 2019 6:41 am

http://www.uabonline.org/en/news/arabicnews/15751604158716061583157515781575160415821604161015/59356/0

Gulf bonds are a safe haven for Asian investors

11/01/2019

Gulf bonds are a safe haven for Asian investors Rc_154719372498_23

LONDON (Reuters) - Middle East high-profile bonds boost their position as a haven for Asian bond investors as they prepare for the impact of US sanctions in other regions and a trade war with China, a Bloomberg report said yesterday.
UB Asset Management and Singapore Bank Limited placed their weight on Gulf bonds during the year.
Investors have sold Gulf bonds due to falling oil prices, Qatar's territory and foreign policy, while the yield on GCC-listed bonds has fallen since they hit 2010 high in November and are now trading at an equal price for high-rated Asian bonds, Barclays.
Credit quality
The growing recognition of better credit quality for the Middle East, coupled with the fact that Saudi Arabia is the largest source of dollar bonds between emerging markets in 2017-2018, has helped re-attract investors.
"The relative immunity of the Gulf Cooperation Council (GCC) from trade tensions, high credit rating, and local offering," said Patrick Walker, director of fixed-income fund for emerging markets at UB Asset Management in Singapore, which manages $ 24 billion in assets. The strong, makes the region a favorite in a global climate of uncertainty.
He added that the expected inclusion in the JPMorgan Chase index of emerging market bonds for Saudi, UAE, Bahrain and Kuwait bonds starting this month also contributes to an appetite appetite for bonds.
Attractive opportunities
Singapore Bank Limited sees attractive opportunities in a number of corporate bonds in Dubai, Abu Dhabi, Saudi Arabia and Kuwait, as well as selected Saudi sovereign bonds, but takes a neutral stance from Bahrain and Oman.
Christopher Langner, investment strategist at First Abu Dhabi Bank, said the bank has evidence of increased interest from investors, wealthy Chinese individuals, Taiwan insurers, Malaysian and Indonesian institutions, which also find the Middle East attractive in light of the abundance of Shariah-compliant bonds Which provide returns commensurate with the ratings they carry, and have higher liquidity than some Asian exporters.