Sector Review: GCC bond markets remain strong during COVID-19 meltdown

By Rahul Vaimal, Associate Editor
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GCC Stock Trading | Representational Image

So far this year, the GCC bond markets have comparatively stayed resilient, having in recent weeks only sold off 60 percent of emerging market debt and roughly 50 percent of high-yield debt.

As most of the investors around the world dealt with buoyancy across most of their lucrative asset classes, Gulf bonds are beginning to remain resilient after yet another crisis, although not without having experienced their own fair share of issues.

Representational Image

GCC’s debt markets did observe situations of sharp sell-off in the last few months as pandemic-induced investor concerns rose and oil prices nosedived. But several analysts still see them ending the year healthy.

“This year total new bond issuances will likely surpass the record $101 billion raised in 2019,” said Anita Yadav, a capital markets expert, who sits on the board of Aspire Capital and The Gulf Bond and Sukuk Association.

“This is owing to the fact that sovereign budget deficits will balloon in the face of dismally low falling oil prices,” added Yadav, who has well over two decades of expertise in financial markets across Asia, Australia and the MENA region.


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