MSCI EM transition to drive UAE, Qatar TRS market

The move by MSCI to upgrade UAE and Qatar from frontier status to emerging market status is likely to drive greater activity in total return swaps on the specific countries. Liquidity in the country specific TRS market has shown signs of growth prior to the announcement from MSCI on Wednesday, which structurers say will lead to greater accessibility and tighter spreads in UAE and Qatar as it develops further.