Bahrain 10-Year Bonds Favored, Arqaam Capital's Rizk Says

The video discusses investment opportunities in the Gulf region, focusing on Bahrain and Saudi Arabia. It analyzes the current credit cycle, highlighting the differences between high yield and investment grade bonds. The discussion also covers recent outflows from Asian credit markets and potential scenarios affecting these trends, including geopolitical tensions and trade wars.

What is one reason Bahrain's bonds are considered a good investment opportunity?

• They have a flatter curve compared to Saudi bonds.

• They are backed by the GCC.

• They are included in the JP Morgan index.

• They have a higher yield than Saudi bonds.

What is the significance of the JP Morgan index inclusion for the GCC region?

• It will lead to increased outflows.

• It will cause inflows and tighten the spectrum.

• It will decrease bond yields.

• It will increase geopolitical tensions.

How does the current credit cycle compare to the past, according to the speaker?

• The 10-year yield is at an all-time low.

• The duration is shorter than in 2016.

• The cushion against downside risks is larger now.

• The yield is lower than before.

What is a potential outcome if the 10-year yield reaches its cyclical high?

• Geopolitical tensions will resolve.

• There will be no outflows from EM bonds.

• The cushion will decrease significantly.

• Outflows from EM bonds will widen.

What impact do geopolitical tensions have on the 10-year yield and EM outflows?

• They have no impact on the bond market.

• They increase the 10-year yield to 4.0.

• They prevent the 10-year yield from reaching 3.8.

• They cause a complete stop in EM outflows.