1421 GMT - Higher interest rates are weighing on Gulf fixed-income markets without triggering a broader deterioration in investor appetite for regional credit, Kamco Invest says. GCC bond and sukuk, or Islamic bonds, issuance fell 17.5% on quarter to $42.5 billion in the third quarter, while the GCC Credit + High Yield Index lost 3.8%. However, GCC credit spreads ended the quarter at 88 basis points, roughly half the emerging-market average of 170 basis points. Kamco says the selloff reflects higher rates rather than concerns over Gulf credit quality, with sovereign deals from Kuwait, Saudi Arabia and Qatar attracting orders two to five times their issue sizes.