Bips & Pieces
Kenyan Bond Yields Spike Due to Pandemic, Locust Disruption – Cytonn Investments
As the COVID-19 pandemic wracks emerging and developed economies alike, market have gone into overdrive with shares and bonds both suffering heavy sell-offs as investors flee to the safety of US dollars. Kenya’s local currency treasury bonds (TBs) and outstanding Eurobonds have been no exception to this trend.
26 Mar 2020
Dangote Cement Moves Forward with Bond Debut
One of Nigeria’s largest companies is moving forward with a debut bond issuance to help raise medium-term funding.
26 Mar 2020
Latin American Borrowers Brace for Volatility, Draw Down Credit Lines
Mexico’s Televisa and Brazil’s Vale are the latest corporates to make use of any credit available to them in what is likely to be a slew of regional and emerging market borrowers looking to shift into capital conservation mode in a turbulent market.
26 Mar 2020
Liquidity Concerns – Not Solvency – Driving Fixed-Income Pricing - Eaton Vance
As demand for dollars worldwide soars, cracks and dislocations are appearing in various markets including fixed income, which has seen a huge liquidity drain despite largely unchanged fundamentals.
25 Mar 2020
City of Tshwane Defaults on Bond – Nedbank
On 24th March, the City of Teshwane Metropolitan Municipality, a local government municipality covering Pretoria and the surrounding areas, defaulted on a ZAR5.5bn local currency medium-term note. According to Jones Gondo, Senior Credit Analyst, and Nthulleng Mphahlele, Analyst at Nedbank, it is a technical default caused by government issues.
25 Mar 2020
Emerging Market Corporate Defaults Unlikely to Reach 2008/9 Levels - Bank of Singapore
Investors concerned about a global financial crisis-style blowout in emerging market corporate spreads may be pleasantly surprised as a number of technical and fundamental factors leave the asset class in a much stronger position than was the case over a decade ago, according to Bank of Singapore analysts.
25 Mar 2020
Mexico Growth Outlook Sinks as Focus Shifts to Healthcare, Support for Most Vulnerable
The impact of the COVID-19 pandemic is expected to generate a significant GDP contraction, BBVA analysis indicates, as care and support for the most vulnerable should be given priority over immediate fiscal objectives.
25 Mar 2020
The Gambia Secures USD47.1mn in Credit from IMF
The Gambia has secured a USD47.1mn extended credit facility (ECF) from the International Monetary Fund (IMF) this week, with the proceeds from the funding going towards the development of policies to help contain the spread of COVID-19 and mitigate its economic impact.
24 Mar 2020
UAE Bank to See Asset Quality Weaken – Fitch Ratings
The impact of the coronavirus is being felt by countries and sectors worldwide, but the UAE is particularly sensitive as key sectors like oil & gas and logistics feel the disruption more severely. For the country’s banking sector, the pandemic looks set to place additional pressure on banks’ credit profiles by reducing asset quality, according to a note from Fitch Ratings.
24 Mar 2020
Looking Past the Pandemic: Where Will the Opportunities Lie?
The advent of the COVID-19 pandemic has derailed the outlook of investors worldwide as growth and trade grind to a halt. With no clear end to the crisis in sight, many are increasingly bearish. But according to Hani Redha, Multi Asset Portfolio Manager at Pinebridge Investments, if investors look past what is likely a temporary downturn, then there are opportunities in the distance.
24 Mar 2020