Sukuk List Staying Selective As Geopolitical Tensions Ease

UBS maintains a quality bias for sukuk investments following an easing of US-Iran geopolitical tensions. The firm continues to favor high-rated issuers while maintaining selectivity within the high-yield segment.

Key Takeaways

• 1.Sukuk spreads have remained stable year to date, with total returns flat amid rising global yields.
• 2.The US-Iran framework agreement to end hostilities is seen as supportive for the market.
• 3.CIO maintains a quality bias in its Top Sukuk List, favoring higher-rated issuers while remaining selective in high yield.

Table of Contents

• UBS CIO risk views
• Credit risk flags
• Very low credit risk
• Medium credit risk
• High credit risk
• Issuer credit outlook
• UBS CIO valuation views
• Relative value bond recommendations
• Attractive
• Fair
• Expensive
• Sell recommendations
• Issuer valuation views
• Required Disclosures
• Analyst certification
• Company/Country Disclosures
• Producers, disseminators and their competent authorities
• Frequency of updates
• Statement of Risk

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