21.01.2013 - Gulf bonds to weather jump in US treasury yields
A jump in US Treasury yields in the last few weeks has raised a grim possibility for emerging market bond investors: a sustained back-up in US yields that could sink the value of bond holdings. But compared to many other places in the world, the Gulf looks well-placed to weather such a storm. Because it has a big local investor base of cash-rich financial institutions, the region may quickly absorb any mass exit by foreign investors from its bonds. And relatively high yield levels, especially for lower-rated bonds, give countries in the six-member Gulf Co-operation Council some protection...............................................Full Article: Source
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