Middle Eastern fixed income, the darling of regional investors during the past year, is now putting them in a state of anxiety. The jury is out on whether demand for the region’s debt, which brought a record year for bond and sukuk sales in 2012, is in danger of running out of steam amid a pullback from recent highs.
Dubai’s latest 10-year sukuk is trading at a discount of 12 basis points to its par value, after a sale that analysts said was “aggressively” priced. Upon issuing, the emirate’s debt returned a coupon of 3.85 per cent, lower than equivalent dated debts sold by the Italian government………………………………………..Full Article: Source