Manama, Bahrain – 15 March 2016: Demand for high-quality fixed income assets will remain insatiable during 2016, as long as oil prices and interest rates stay low. This is the outlook of Bahrain-based Securities & Investment Company (SICO), following its latest review of the global and regional fixed income markets.
Global deflationary pressures and a slowdown in China, along with negative interest rates in Europe and Japan, are likely to limit rates from widening much this year. The divergence and volatility in international markets during the first two months of 2016 has led to significant mispricing and opportunities within the GCC bonds and Sukuks. According to SICO, bottom-up analysis has the potential to add significant value on the back of the weak macro environment. GCC fixed income now offers one of the highest sources of income among global fixed income and dividend-paying assets.
The full press release in English & Arabic can be downloaded here