Century Financial’s CEO Expects Substantial Amount of Issuance in Gulf

The video discusses the expected issuance in the GCC region for 2020, highlighting Saudi Arabia's dominance in the debt market. It analyzes the tightening of GCC spreads and the hunt for yield, noting that credit quality has not necessarily improved. The economic outlook for 2020 is mixed, with potential modest gains in bonds due to coupon clipping. The video suggests a cautious investment strategy, focusing on high-grade bonds due to economic uncertainties.

What is the expected range of primary market issuance in the GCC bond space?

• 50 to 60 billion

• 70 to 80 billion

• 80 to 90 billion

• 90 to 100 billion

Which country is expected to dominate the borrowing space in the GCC?

• Saudi Arabia

• Qatar

• Kuwait

• United Arab Emirates

What has primarily driven the tightening of GCC spreads?

• Improved credit quality

• Hunt for yield

• Increased oil prices

• Government policies

What is one potential scenario for 2020 that could support credits?

• Stronger dollar

• Weaker dollar

• Decreasing oil prices

• Increased government spending

What is the expected impact of reduced government spending on economic growth in the GCC?

• No impact

• Rapid growth

• Increased growth

• Slower growth

In a slowing economy, which type of investment is suggested to be safer?

• High grade

• Equities

• High yield

• Commodities

What is the expected performance of bonds in the GCC for the year?

• Huge capital gains

• Huge capital losses

• No gains

• Modest gains