Policy & Government
No Two EM Bankruptcies the Same
Oi’s Dutch units may be forced to declare bankruptcy in the Brazilian telecom giant’s ongoing bankruptcy saga. Whilst distressed EM companies with offshore assets in DMs are appealing, bankruptcies across the EM world are nuanced and carry unique consequences for investors.
5 Dec 2016
Could Post-Castro Cuba Open Doors for Foreign Capital?
For years Cuba has existed in its own ‘socialist bubble’, which was established and maintained over the past five decades by Fidel Castro, his brother Raul and their followers. With the Comandante’s passing, could the Caribbean island finally be ready to integrate with the global economy and open itself to international investors?
2 Dec 2016
Make EMs Great Again: Trading on Trump
Emerging market outflows have hit record highs and EM bond spreads have widened by over 17bp since business magnate Donald Trump won the US election, a result that continues to influence markets nearly three weeks after the President-elect declared victory. As a picture of what a Trump presidency means for global markets begins to form, EM investors are starting to emerge from the sidelines in…
2 Dec 2016
When The Quantitative Easing Tap is Turned Off: Implications for Emerging Markets
Contrary to popular perception, Quantitative Easing (QE) policies were bad news for Emerging Market (EM) countries. It had the effect of a giant magnet, sucking capital out of Emerging Markets as investors sought instead to allocate to the QE-subsidised markets in Europe and the US.
1 Dec 2016
Top Dealmaker: Demetrio Salorio, Societe Generale Corporate & Investment Banking
Markets in 2016 kicked off much like they appear to be winding down: with many unknowns ahead. Nevertheless, that uncertainty has bookended a record year for debt capital markets globally, as low interest rates and quantitative easing sent money into new regions (particularly emerging markets) and asset classes (such as European high yield), enabling borrowers to capitalise on reduced costs of…
28 Nov 2016
Turkish Participation Banks Grow as Sukuk Outlook Improves
Participation banks have scaled up their retail outfits rapidly over the past few years, consistently besting average growth rates in the Turkish banking sector, and analysts are optimistic about the health of the country’s Islamic capital markets.
18 Nov 2016
Malaysian NDF Ban Reinforcement Puts Investors on Back-Foot
Malaysia’s Central Bank recently began reinforcing a ban on offshore Malaysian ringgit trades in a bid to improve monitoring and management of an already battered currency. Some analysts believe the move, which comes at a time when EM sentiment is already quite fragile, may threaten foreign fixed income investment and FDI in the country.
18 Nov 2016
Bonds Rally despite India’s “Inconvenient” Currency Ban
Millions of people are still queuing up at Indian banks to exchange their now worthless 500 and 1000 rupee notes one weak after Prime Minister Modi surprised markets with a controversial ban on large-denomination notes. Nevertheless, the country’s local debt market has been one of top global performers in the days since the ban was imposed.
16 Nov 2016
Will China’s CEE €10bn Fund Open Doors to Europe?
Several years of discussions between China and the Central and Eastern European (CEE) states has finally manifested itself into a concrete deal – an US$11.15bn investment fund for projects in the region. But will it create a pipeline for further Chinese investment?
8 Nov 2016
Lull hits MILA debt offerings as markets assess global risks
Chile’s proposed return to the international debt markets and Mexico’s recent euro-denominated trade mark a rare sign of activity in the MILA region over the past few months. What is causing the slowdown?
26 Oct 2016