Bahrain Picks Banks for Third Eurobond Sale

The video discusses the recent surge in Gulf bond sales driven by lower oil prices and budget deficits. Despite the influx of new debt, the market environment remains favorable, with UAE bonds reaching record highs. This is partly due to increased investor demand, even as oil prices fluctuate. The broader emerging market space is also experiencing a rally, driven by the search for yield as developed country bond yields hit record lows. The real yield on emerging market bonds is significantly higher than that of G10 countries, raising questions about risk compensation for investors.

What has been a significant factor driving Gulf countries to issue new debt?

• Decreasing investor demand

• Rising oil prices

• Growing budget surpluses

• Lower oil prices

How many times has Bahrain tapped the Eurobond market this year?

• Once

• Four times

• Three times

• Twice

What helped the Bloomberg index of U.S. dollar-denominated UAE bonds reach a record high?

• Increased supply of bonds

• Decreased investor demand

• Higher oil prices

• Lower oil prices

What is the real yield on EM bonds compared to G10 countries?

• Higher for EM bonds

• Negative for EM bonds

• Higher for G10 countries

• Equal for both

What is a key concern for investors in emerging markets?

• High inflation rates

• Adequate compensation for risk

• Stable political environment

• Low currency volatility