Dubai's Shorter-Dated Bonds May Prove a Better Bet: Arab Credit

Because of the need to hedge against an increase in U.S. treasury yields and the fact that investors shift toward shorter maturities, Dubai's Islamic bond due 2014 could provide better returns than its 2020 security.
The yield gap between the Dubai government's 6.396% sukuk, due 2014 and its 7.75% security due 2020 widened 11 basis points this month, led by a drop in yields on the shorter-dated notes. The statement came from Bloomberg.