National Bank of Abu Dhabi, or NBAD, Cautious Fixed Income Fund, an open ended instrument has raised Dh170 million as on February 28, since its launch earlier in the month, said Sameh Al Qubaisi, head of Corporate Coverage & E-Commerce Financial Markets Division, at NBAD.
He said that his bank is working to manage the high cost of funding. Talking about the prospects of fixed income market, he said despite the continuing European saga, Investor appetite for GCC fixed income will continue to dominate in 2012. “More investors are seeing better value in GCC/EM bonds relative to similarly rated corporate and sovereign bonds in developed countries, “ said Sameh Al Qubaisi giving a review of the fixed income market on the sidelines of the two-day Global Financial Markets Forum, being organized by National Bank of Abu Dhabi, Khaleej Times reported.
He said that investor risk-on mode together with historically low interest rates coupled, with the region’s growth plans in countries such as Qatar, which is preparing for the FIFA as well as Saudi Arabia and UAE will definitely continue to induce and positively prolong the supply and demand dynamics for fixed income in the region.
“We believe sovereigns, financial institutions as well as corporates are well positioned to take advantage of low interest rates and investor demand for quality paper in conventional and Shariah-compliant formats, to refinance existing debt maturities, as well as solidify their balance sheets,” Al Qubaisi said.“We started 2012 on a very good note with two sukuks of First Gulf Bank, EIB from Abu Dhabi and Dubai.”