Tuesday 31 May 2011

THE DAILY STAR : Dubai bond most susceptible to Europe woes: Islamic finance

Dubai’s Islamic bonds tumbled the most in six months last week as investor concern over Europe’s growing debt crisis prompted a sell-off of the region’s riskier assets.

The yield on the 6.396 percent dollar sukuk maturing in November 2014 climbed 22 basis points, or 0.22 percentage point, the biggest weekly gain since November and the steepest among Arab Gulf issuers, to 4.83 percent Friday, Bloomberg prices show.

The rate fell to a record low of 4.6 percent on May 19. The average yield of Gulf sukuk was unchanged last week at 4.55 percent as yields on Bahrain’s government bond dropped, according to the HSBC/NASDAQ Dubai GCC U.S. Dollar Sukuk Index.

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