Saudi Bonds Look Fairly Priced, Emirates NBD's Yadav Says

The video discusses the economic and investment landscapes of Oman and Saudi Arabia. Oman is experiencing growth with limited debt maturities and plans to sell assets, making its bonds appear undervalued despite volatility due to mixed credit ratings. Saudi Arabia, while attracting international interest, faces fading optimism due to slower-than-expected progress on its transformation plans. However, its bonds remain fairly priced compared to other A-rated issuers, with new supply expected and local currency market activity helping reduce dollar-denominated issues.

What is one of the reasons Oman's bonds are considered cheap?

• Strong government support

• Low debt maturities

• Crossover credit rating

• High economic growth

How does Oman's credit rating affect its bond market?

• It increases volatility

• It attracts more investors

• It reduces interest rates

• It stabilizes the bond prices

What is a factor contributing to the fading optimism in Saudi Arabia's bond market?

• Decreasing oil prices

• Slow progress on national plans

• Political instability

• High inflation rates

Compared to other A-rated issuers, how are Saudi bonds perceived?

• Highly volatile

• Overvalued

• Fairly priced

• Undervalued

What is one strategy Saudi Arabia is using to manage its bond market?

• Increasing dollar-denominated issues

• Tapping into the local currency market

• Reducing government spending

• Raising interest rates