Dubai Haven Status Frays as CDS Follow Iraq Higher: Arab Credit - Bloomberg

Dubai Haven Status Frays as CDS Follow Iraq Higher: Arab Credit - Bloomberg:



"Dubai is losing the trust of debt investors faster than any nation in the Middle East except Iraq as regional turmoil threatens its haven status.



The cost of insuring the emirate’s bonds against non-repayment using credit-default swaps climbed to 165 basis points on July 20, the highest level since May 5, according to prices compiled by CMA. Swaps gained 30 basis points since June 9, compared with an increase of 93 basis points for Iraq, where militants from Islamic State, an al-Qaeda offshoot formerly known as ISIL, have taken control of parts of the country.



The turmoil in Iraq, violence in the Gaza strip and conflict in Syria are shaking investor confidence in the Middle East just as Dubai revives a construction and spending spree to cement its role as the region’s business and tourism hub. Swaps are gaining after last month falling to the lowest level since before Lehman Brothers Holdings Inc’s collapse."



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