Saudi Arabia Said to Plan Dollar-Denominated Sukuk as Soon as October

The video discusses the impact of global diplomatic tensions on markets, focusing on the reactions to developments between Iran, the US, and Saudi Arabia. It examines the stability of oil prices and bond spreads, highlighting Saudi Arabia's financial strategies to address its fiscal deficit. The analysis extends to GCC bonds, comparing them to other emerging markets, and notes a shift in investment trends towards higher quality securities. Despite challenges, the demand for bonds remains strong, driven by the hunt for yield in a market with negative yielding assets.

What was one of the main reasons Saudi Arabia wanted to prove market demand for their risk?

• To increase oil production

• To cover their fiscal deficit

• To improve diplomatic relations

• To decrease bond yields

How are GCC bonds currently performing compared to other emerging markets?

• They offer lower returns

• They have lost all their advantages

• They still offer interesting adjusted returns

• They are not in demand

What is one reason fund managers are turning cautious in 2019?

• Increase in oil prices

• Addition of higher quality securities and cash

• Decrease in bond yields

• Reduction in fiscal deficits

What was the market reaction to the new issuances from Abu Dhabi and Bahrain?

• They were not issued

• They were well oversubscribed

• They were priced above initial targets

• They were undersubscribed

What percentage did Bahrain's 2027 sukuk price at?

• 3%

• 4.5%

• 5%

• 6%