"The charge of UAE corporate credit has abruptly entered reverse gear, as hints that the Federal Reserve in the United States may end its monetary easing policies of the past few years sent many investors scrambling for the exit.
The HSBC/Nasdaq Dubai US Dollar Sukuk/Bond index for the UAE this week reversed moderate gains seen earlier this year with total returns turning negative, down 0.5 per cent this year. During all of 2012, the same index returned 15.1 per cent in total.
The sell-off has moved in line with a rout in US treasuries late last month after comments from the Fed chairman, Ben Bernanke, suggesting the Federal Reserve may begin "tapering" bond purchases, signalling an end to the policy known as quantitative easing."
'via Blog this'
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