Ali El Adou, head of asset management at Daman Investments in Dubai, talks about Lebanon’s bonds and the opportunities he sees in the region’s markets. The yield on Lebanon’s next Eurobond to mature rocketed to more than 200% last week as the government’s prospects of avoiding a default diminished. Adou speaks with Manus Cranny and Yousef Gamal El-Din on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)

It gives us great pleasure to share the October 2023 issue of Daman’s Monthly Review, Asset Allocation & Outlook.

Highlights of the month:
1. Risk assets witnessed a steep decline due to rise in 10-year US treasury real yield and geopolitical escalations
2. Stronger than expected economic data in US and increased supply of treasuries drove higher the long end rates
3. MSCI All Country World Index and MSCI EM Index fell 3.1% and 3.9%, respectively
4. Barclays EM Aggregate Index fell 1.5% from widening spreads as 10-year yields flirted with 5%+ levels
5. UST 2YR rose 4bps to 5.1%, while UST 10YR added 36bps to 4.9%, inversion further improved to -16bps
6. Gold rallied 7.3% on its safe haven appeal
7. MENA equities fell with S&P Pan Arab Composite Large Mid Cap Index down 4.3%
We are overweight on fixed income and neutral on equities