Gulf Spreads May Fall as Trump Favors Iran Sanctions Over Attack - Bloomberg:
Investors in Gulf assets breathed a sigh of relief after U.S. President Donald Trump showed restraint against Iran.
Calling off airstrikes and opting for additional sanctions on Iran eases the risk of military combat between the Persian nation and its Arab neighbors, and will probably have a positive impact on GCC spreads, according to Arqaam Capital Ltd.
“While GCC bonds have continued to rally despite the uncertain geopolitical environment, they have under-performed emerging-market peers,” said Dubai-based Abdul Kadir Hussain, the head of fixed-income asset management. An easing of geopolitical risk “may also mean that issuers like Oman that have been waiting for a toning down of political rhetoric might use the opportunity to issue,” he said.
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