No Winners in Gulf as Saudi, Qatari Assets Converge
- Stocks, bonds, CDS trading at similar levels 7 weeks into spat
- Analysts say focus back on oil with Gulf crisis in stalemate
Sheikh Tamim Says Qatar Is Open to Dialogue
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Investors aren’t taking sides in the biggest political crisis in the Gulf in decades because their focus has already returned to oil.
Seven weeks after Saudi Arabia led a coalition of Arab states in cutting ties with Qatar over allegations that it supports terrorism, holders of both countries’ stocks and bonds are paying almost identical risk premiums. Their five-year credit default swaps converged for the first time in two years, stocks are at about 13.7 times’ projected earnings over the next 12 months, and their international bonds were almost on Monday.