A spectacular rally in Dubai-linked Islamic bonds is pushing yields to record lows and influencing prices in the entire Gulf debt market. Some investors think the rally has reached excessive proportions, potentially setting bonds up for a partial pull-back when the euphoria starts to fade.
Dubai’s $1.25bn sovereign sukuk, issued at a profit rate of 6.396% in November 2009 and maturing in 2014, was yielding just 3.2% yesterday, for example………………………………………..Full Article: Source