Driven by positive sentiment and an increasing belief in an amicable settlement between Dubai World and its debtors, credit default swaps linked to Dubai fell yesterday by 29.31 basis points to 437.19 basis points, according to prices provided by CMA DataVision in London.
This is a fall of 32.9 per cent since February 15, when the CDS were 652 bps.
In another sign of growing confidence yesterday, Nakheel's $750 million (Dh2.75 billion) sukuk maturing in January gained 2.125 cents to 63.75 cents on the dollar at 3.19pm in Dubai, according to Citigroup prices. The bond headed for the highest close since December.
Nakheel is a property unit of Dubai World that is building palm-shaped islands off the coast of the emirate.