Saudi debt instruments are ranked fifth in emerging markets


Saudi debt instruments achieved gains of 1.33% during the period from December 14 to December 18, which marks the end of the pandemic’s most difficult year for the global economy. And it became the fifth best sovereign in terms of performance in emerging markets, according to the ICE Bank of America Merrill Lynch bond index, with its weight in this index reaching 12.8%. The increase in Saudi debt instruments returns in the last weeks of this year despite the investors ’appetite for instruments. High-yielding bonds, known as “high-yield bonds,” at the expense of high-quality names according to the “Credit Sites” platform that specializes in preparing independent research notes in credit affairs. In the same context, the “existing” Saudi debt instruments have strengthened their presence in the portfolios of market investors. Emerging issues at the end of the first half of the year when they collectively accounted for 0.03%, equivalent to $ 131.7 billion of the total emerging market issuances amounting to $ 4.1 trillion. Thus, debt instruments for Saudi entities become an integral part of the performance indicators of international bonds and global asset management companies ’portfolios, whose impact is evident. Positive pricing and the increase in foreign investors’ appetite for such issues.

On the other hand, Saudi exporters ranked second in the most active in debt issuance of hard currencies in the Gulf region by the end of the first half, as their existing issuances accounted for 29.1% of the total Gulf region issuances amounting to $ 452 billion. It was released in past years and it is not too late to extinguish it. The statistics of the first half of this year were based on the study of the fixed income management of First Abu Dhabi Bank and on the debt instruments issued, regardless of the type of currency in which the original issue was closed.

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