Currencies
Yen-denominated debt in LatAm: Will issuers think twice?
The Japanese yen dipped below 100 against US dollar for the first time since the Brexit referendum result shocked the markets on 24 June this year. With a few brief exceptions, the yen has been on the rise since mid-2015, which could give some Latin American issuers pause when considering the Samurai bond market, particularly given the increasingly prohibitive cost of swaps.
18 Aug 2016
Too soon to tell if Russo-Ukrainian tensions will affect Russian bonds
Tensions between Russia and Ukraine are on the rise again, with the markets reacting negatively to an escalation before the weekend, though tempers seem to be settling. This has again been reflected in the markets, with the Russian rouble outperforming other EM currencies early this week. At this stage tensions are also unlikely to impact the Russian bond market, and any effect would likely be in…
15 Aug 2016
The rise of Brazil’s real
Although the appreciation of the Brazilian real is being driven by improving economic fundamentals, there are factors that could cause the currency’s rise to slow. Exporters may suffer, but a stronger real is unlikely to impact investor interest in the country’s assets.
8 Aug 2016
EM credit rally strong despite negative rating actions
The EM rally has significantly benefited fixed income across developing economies. Although it will eventually slow, the participation of large institutional flows will yet carry it forward. Mainly negative ratings actions concerning EMs have not affected the rally, as such activity tend to come after the markets have moved forward.
29 Jul 2016
Short term stability, long-term uncertainty in Turkey following coup attempt
A coup attempt in Turkey has stirred the country’s markets, sending its currency down and yields on government bonds higher. While the coup attempt was short-lived and markets seem to be calming, EM investors and analysts suggest the event could have far reaching implications for Turkish credit over the long term.
19 Jul 2016
EM quarterly growth highest in two years
The last three months have seen the largest increase in emerging market growth since 2014, while May saw the largest monthly advance in four years, according to data released by the IIF.
13 Jul 2016
Strong US data doesn’t disqualify other key risks, EM analysts, PMs warn
Stronger jobs growth data out of America sent US equities to all-time highs earlier this week, with some anticipating a more aggressive timetable for a US interest rate hike. EM analysts and portfolio managers caution that other significant risks are present and could complicate such a move.
12 Jul 2016
Babson bearish on China as government resorts to “old ways” to stimulate investment
Positive sentiment around an economic rebound in china may be short lived as the country’s government continues to resort to “old ways” of stimulating investment and returns, argues EM sovereign and corporate debt specialists at Babson Capital Management.
11 Jul 2016
EM vs. US Corporate Bonds: Role Reversal?
EM high yield (HY) corporate bonds have outperformed US HY corporate bonds this year and default rates are significantly lower, particularly now, but also over the cycle.
7 Jul 2016
Could lower rates spell higher EM bond issuance?
Slow global growth, combined with uncertainty partially caused by Brexit has increased the likelihood of central banks across emerging and developed markets loosening monetary policy. The move could lead to a spate of bond issuances from the EM sphere in some cases.
4 Jul 2016