War or Not, Bond Investors Are Taking Their Chances in the Gulf - Bloomberg:
Bond investors can’t resist the allure of Gulf debt even as the region teeters on the brink of conflict between the U.S. and Iran.
Staring down about $13 trillion of negative-yielding global debt, investors are going for the payout on bonds in the Gulf Cooperation Council, a six-nation bloc arrayed across from Iran. Their inclusion in JPMorgan Chase & Co.’s emerging-market indexes also means there’s consistent demand for sovereign debt from the region, which boasts an average credit rating of A+. Saudi Arabia sold its first-ever euro bonds on Tuesday.
Tensions in the Gulf spiked since the U.S. exited a nuclear accord with Iran a year ago and reimposed crippling sanctions. Following the Iranian downing of an American drone, President Donald Trump called off retaliatory airstrikes minutes before the action was set to start.
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