Policy & Government
Change is coming to Kenya’s banking sector
Kenya’s banking sector has seen a worrying rise in NPLs and a decaying deposit base. With three banks placed under receivership by Kenya’s Central Bank in less than a year and stiffer capital adequacy regulations in the offing, we speak with Linet Muriungi, Head of Research and Edwin Chui, Senior Fixed Income and Banking Sector Analyst at Dyer & Blair Investment Bank about the impact on the…
14 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
BRIC And Mortar: Recent Challenges Aside, Opportunities Abound
Emerging Markets (EM) equities continue to be an exciting area of opportunity in 2016, even though performance overall has been challenging over the past 5 years. The long-term case for EM equities, which is broadly similar to that of EM debt, remains intact and, if anything, is now stronger given the relatively attractive valuations seen in EM equity markets.
5 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
In The Know: A View From The MENA Fixed Income Markets
Anita Yadav is Head of Fixed Income Research at Emirates NBD. She has over 14 years of experience in fixed income research and sales, spread across Australia, India, Asia and Middle East. In her current role, she focusses on global fixed income markets with a particular emphasis on the GCC region, covering conventional bonds as well as sukuk products.
1 Jul 2016
Ashmore: Brexit shows markets totally underestimate DM risks
The spill-over of post-Brexit market pandemonium was fairly minimal in EMs with the exception of some Eastern European countries like Poland and Hungary. But above all, recent market activity shows investors generally underestimate – and thus aren’t compensated for taking – risks in developed markets, according to a recent note from Ashmore Investment Management.
28 Jun 2016
Brexit: Time To Be Rational Not Sentimental
With markets increasingly pricing Remain in the days prior to the referendum, global equities are down sharply, matching or in some cases exceeding the dark days of 2008. Sterling is at the centre of the storm, with a nearly 10% hit against the US dollar since Thursday’s close. Not surprisingly, traditional safe havens such as government bonds in advanced economies, the Japanese yen and gold are…
24 Jun 2016
Brexit rocks the EM boat
Brexit has sent shock waves across international markets. Although emerging markets across the globe and investor sentiment are suffering in the wake of the vote, some economies coping better than others, and overall the implications of the UK’s vote to leave could soon subside. However, future referendums across other EU member states could have serious implications for Eastern European EMs in…
24 Jun 2016