What underpinned the boom in frontier market issuance in emerging markets in 2013 -2014 and, given the retreat from risk, will GCC region issuers have the credit quality to take over the EM mantle from frontier markets when risk appetite returns?
13 Apr 2016
South Africa seems to be benefiting from an uplift in emerging markets as the stabilisation in China’s economy and the commodities sector sent the rand to four-month highs this week. Despite the positive shift, a successful Eurobond sale, and an end to some short term political strife, some investors are still concerned about long-term structural issues plaguing the country.
12 Apr 2016
Emerging markets have reacted well to dovish signals from the US Federal Reserve. The rise in commodity prices has also contributed to their performance. However future interest rate increases combined with a slowdown in the rise in commodity prices could end the rebound.
6 Apr 2016
The EM asset class entered 2016 with challenging macroeconomic backdrop, supportive technicals and size difficult to ignore. But the divergence in performance between corporates and sovereigns has been clearly set in 2015 and is expected to continue.
6 Apr 2016
Moody’s decision to lower Mexico’s credit outlook is linked to the performance of the state oil company. Any support given to Pemex by the sovereign could impact its current fiscal targets, which could contribute to a downgrade. However, as one of the best performers in emerging markets, it is unlikely that a downgrade would strongly affect foreign appetite for Mexican debt.
1 Apr 2016