14 January 2019

1 mins

Performance of GCC bonds and sukuk in 2018

GCC bonds outperformed their emerging market peers in 2018 mainly as a result of rising oil prices and increased bid on the back of inclusion in the JP Morgan's EMBI index.

GCC bonds outperformed their emerging maket peers in 2018 mainly as a result of rising oil prices and increased bid on the back of inclusion in the JP Morgan’s EMBI index.
Option adjusted spreads on GCC index bonds increased 57bps to 212bps compared with 60bps widening in credit spreads on US Corps to 153bps and 117bps widening in credits spreads on emerging market USD denominated bonds to 343bps.
During the year, GCC bonds universe recorded increased duration and better sector diversification.
New issue pipeline was robust.
Sovereign curves generally shifted upwards and high yield bonds performed well.

Source: Emirates NBD Research, Bloomberg