File - Monday, May 26, 2014, shows abra taxi boats leaving their station in Bur Dubai to take passengers to Deira in Dubai, United Arab Emirates. (AP Photo/Kamran Jebreili)
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Islamic bonds from Damac Real Estate Development Ltd. have become the region's worst performers this year just three months after they were issued, amid concern Dubai's property boom is running out of steam.The yield on Damac's 2019 sukuk jumped 69 basis points to 5.87 percent in June, according to data compiled by Bloomberg, compared with the 10 basis-point increase to 4.17 percent for Middle East Islamic bonds on a JPMorgan Chase & Co. index.While Damac's initial pricing for the sukuk was in the mid-300 basis-point mark verses midswaps, it narrowed to 310 basis points by the time it sold the debt. Damac's $650 million sukuk has lost investors 1.3 percent this year through last week, according to data compiled by Bloomberg. Damac's sukuk yield fell one basis point Monday to 5.8 percent at 12:03 p.m. in the emirate.
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