Bargain hunters eye Saudi debt amid pain over Khashoggi, oil:
As if the fallout over the killing of columnist Jamal Khashoggi wasn’t enough, oil’s decline has helped make Saudi bonds the worst performers among Gulf peers in the second half of this year. But all this panic has created buying opportunities.
“There are times when risks get overpriced,” said New York-based Shamaila Khan, director of developing-nation debt at AllianceBernstein. “We like to take advantage of that when it happens.”
The nation’s bonds have been roiled by the international outrage over the murder of Khashoggi at the Saudi consulate in Turkey. Meanwhile, the price of oil, the kingdom’s main source of income, plummeted into a bear market as the US granted surprise waivers for sanctioned Iranian crude, spurring the yield on Saudi Arabia’s $5bn bonds due 2028 to a record last week.
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