Dubai Crisis? Not for Bond Market Resisting Selloff: Arab Credit - Bloomberg:
"For all the losses suffered by Dubai’s stock investors this week, the Middle East sheikhdom’s bonds are showing few signs of following the rout.
While a restructuring at Arabtec Holding Co. (ARTC), the United Arab Emirates’ biggest listed construction company, is fueling the worst monthly share selloff since 2008, the yield on the emirate’s $650 million May 2022 sukuk has climbed 5 basis points since the end of May to 3.5 percent, staying within 10 basis points of a record low. For Franklin Templeton Investments ME, even that yield move is being spurred by a surge in debt sales from the region that’s prompting investors to switch into new issues.
“I wouldn’t expect any fixed-income selloff to be serious,” Richard Segal, a London-based international credit strategist at Jefferies International Ltd., said by e-mail yesterday. “Were prices supported by local factors alone, debt would be more vulnerable. It’s proving resilient” because global forces are supportive, he said."
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