Bahrain Picks Banks for Third Eurobond Sale

The video discusses the recent surge in Gulf bond sales driven by lower oil prices and budget deficits. Despite the influx of new debt, the market environment remains favorable, with UAE bonds reaching record highs. This is partly due to increased investor demand, even as oil prices fluctuate. The broader emerging market space is also experiencing a rally, driven by the search for yield as developed country bond yields hit record lows. The real yield on emerging market bonds is significantly higher than that of G10 countries, raising questions about risk compensation for investors.

What factors are driving the rush to issue new debt in the Gulf region?

How has the environment for selling debt in the Gulf changed despite the new supply?

What is the significance of the record reached by the Bloomberg index of U.S. dollar denominated UAE bonds?

What impact does the search for yield have on emerging market assets?

How do the real yields on EM assets compare to those from G10 countries?