Investing in the Middle East: Vanguard's Gulf Bond Guide - Bloomberg:
When it comes to the Gulf, Vanguard Asset Management is buying the bonds of Abu Dhabi and Qatar, and shunning those of Saudi Arabia.
The three energy-rich states are among the strongest credits in emerging markets, each of them possessing ratings of single-A or better. This month they sold $24 billion of Eurobonds between them.
But to Vanguard, which manages $6.2 trillion of assets, the world’s biggest oil exporter sticks out as the more vulnerable after the collapse in crude prices this year. It opted against buying the kingdom’s latest bonds two weeks ago -- though with demand topping $50 billion, plenty of other funds thought otherwise.
“Abu Dhabi is probably the best quality of all the oil-producer nations, so we added exposure,” said London-based Nick Eisinger, Vanguard’s co-head of emerging markets active fixed income. “Saudi still has plenty of foreign-exchange reserves and assets to deal with difficulties, but we think it is less robust than Abu Dhabi and Qatar.”
When it comes to the Gulf, Vanguard Asset Management is buying the bonds of Abu Dhabi and Qatar, and shunning those of Saudi Arabia.
The three energy-rich states are among the strongest credits in emerging markets, each of them possessing ratings of single-A or better. This month they sold $24 billion of Eurobonds between them.
But to Vanguard, which manages $6.2 trillion of assets, the world’s biggest oil exporter sticks out as the more vulnerable after the collapse in crude prices this year. It opted against buying the kingdom’s latest bonds two weeks ago -- though with demand topping $50 billion, plenty of other funds thought otherwise.
“Abu Dhabi is probably the best quality of all the oil-producer nations, so we added exposure,” said London-based Nick Eisinger, Vanguard’s co-head of emerging markets active fixed income. “Saudi still has plenty of foreign-exchange reserves and assets to deal with difficulties, but we think it is less robust than Abu Dhabi and Qatar.”
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