IslamicFinance.de

Qatari Islamic bonds are poised to rebound from their steepest weekly drop since November as investors bet issuers' credit strength will resist the country's spat with its neighbours. The yield on Qatari government sukuk due in January 2023 jumped six basis points last week to 3.27 per cent after the United Arab Emirates, Saudi Arabia and Bahrain withdrew their ambassadors. The three neighbours of Qatar, keen to maintain stability in the wake of the so-called Arab Spring, are critical of the gas-rich nation's support for Egypt's Muslim Brotherhood. The ability of issuers to make all payments is not expected to be affected. Although the longer this goes on, the more likely it will have an impact on pricing of new issuance.