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
African economies have struggled from low commodity prices and weakening demand due to their close links with China. However, the continent’s largest trading partner is investing considerable funds in the region to prop up infrastructure projects, which are crucial for the development of the region’s economies.
4 Apr 2016
China could increasingly utilise foreign currencies in its domestic market in an attempt to make trading more profitable for Chinese companies. It could also issue bonds in a variety of the IMF’s reserve currencies to increase the exposure of the yuan to foreign markets.
1 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
India is looking to increase the participation of foreign players in its debt markets. The country is unlikely to struggle to find interest as it is one of the better performing emerging markets, and also has a much more stable political climate that will reassure investors.
31 Mar 2016
The South Korean government, through its Economic Development Cooperation Fund (EDCF), has agreed to provide an increasing number of syndicated loans to African countries. It will mainly work through the African Development Bank (AfDB).
31 Mar 2016
As part of a wider financing plan the Indonesian government has issued a US$2.5bn dollar denominated sukuk, the popularity of which is evidenced through its oversubscription and the global diversification of its investor base.
25 Mar 2016
China is looking to bring in a tax to combat currency speculation.The move comes after numerous attempts by the government and its state banks to support the yuan.
24 Mar 2016
Despite a volatile second half of 2015 and beginning 2016 on a rather precarious note, little seems to stand in China’s way as it seeks to position the yuan as a global reserve currency and supplant the US to become the global benchmark for fixed income.
22 Mar 2016
The world’s largest sukuk market has seen another issuance of Sharia compliant debt on the international capital markets. Despite Axiata’s recent dollar denominated sukuk, the majority of Islamic financing in Malaysia is conducted in the domestic market.
17 Mar 2016