Gulf / GCC — Sovereign

Sovereign issuers from the GCC (Saudi Arabia, UAE, Qatar, etc.).

The GCC sovereign desk presents a compelling relativevalue dislocation, dominated entirely by Bahraini issuance offering highbeta dollar yield within an otherwise tight regional credit landscape. While investmentgrade Gulf peers trade at compressed spreads, Bahrain’s singleB sovereign curve provides substantial pickup, with yieldstomaturity ranging from the mid8% area out to the long end to over 10% on intermediate paper. Frontend yield seekers are finding notable carry in shortduration paper, exemplified by the Bahrain 6.5% maturing in April 2028, which screens attractively with a yieldtomaturity of 10.189% near par. This steep yield premium relative to the broader GCC universe compensates investors for lower credit ratings while maintaining solid USD liquidity. Along the belly and long end of the curve, instruments such as the Bahrain 7.5% due September 2047 and the Bahrain 6.25% due January 2051 offer compelling structural duration, yielding 8.621% and roughly 8.49% respectively. These discounted price points—with the 2051 maturity changing hands in the high70s—provide institutional accounts with an attractive totalreturn profile anchored by sovereignbacked Gulf exposure.

Results are limited to USD bonds with an amount outstanding of at least USD 200MM.