Dec. 9 (Bloomberg) -- The tumble in bonds of Dubaiâs state- controlled companies to record lows signals growing concern more borrowers will fall behind on debt payments as Dubai World seeks to restructure $26 billion of obligations. âWe are concerned that itâs just not Dubai World that has issues,â said Oliver Bell, the head of Middle East and Africa investment at pictet Asset Management in London, which has $120 billion under management. âThe health of other government- related entities is in question.â Dubai World property unit Nakheel pJSCâs $3.52 billion of Islamic bonds due Dec. 14 dropped 5 percent, extending yesterdayâs 10 percent slide, to head for a record-low close at 45 cents on the dollar, according to Citigroup Inc. Bonds sold by Dubai Holdings Commercial Operations Group LLC sank as low as 41.5 cents on the dollar after Moodyâs Investors Service cut the credit ratings of six state-run companies. A jump in the cost of Dp World Ltd.âs credit-default swaps implied a 35 percent risk that the port operator will renege on debt.
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