Asia Pacific
Investors wait on India’s market reforms
Inflation is likely to rise in India following the new governor of the RBI’s refusal to commit to previous calls to hold inflation at 4% by 2018. The news will have a larger impact on the local rather than international markets, but foreign investment in India is unlikely to pick up substantially until wider capital market reforms are implemented.
6 Oct 2016
Asian capital looks to Middle Eastern debt
Middle Eastern issuer and Asian investor cooperation looks set to grow. Low oil prices have reduced domestic liquidity in the GCC and the need to finance budget deficits, combined with a stabilising of Asian currencies and the liquidity ‘surplus’ in these regions means capital is likely to naturally flow from Asian issuers to Middle Eastern borrowers.
4 Oct 2016
India’s corporate bond market, banking sector parting ways
The Reserve Bank of India’s deputy governor has noted that bank financing should not be overlooked in the development of the country’s corporate bond market. The high levels of leverage in the sector have prompted the country’s FIs to de-couple from the corporate space, whilst reforms in the local markets are prompting corporates to source non-bank funding.
29 Sept 2016
NPL-related systemic crisis in China unlikely, but fresh questions raised over solutions
Recent reports of non-performing loans (NPLs) in China exceeding official estimates by a factor of ten are widely overblown, analysts suggest. Nevertheless, with the country’s lenders looking squeezed, fresh questions have been raised about debt-to-equity swaps and pilot NPL securitisation programmes among other solutions being rolled out to combat the growing trend.
27 Sept 2016
China covers covered green bonds
The upcoming issuance of a covered green bond by the Bank of China highlights the increasingly intuitive ways borrowers are looking to access new pools of liquidity. It also cements China’s position as a green bond leader, with the country expected to become the world leader in green bond volumes by the end of the year.
19 Sept 2016
Rouble-Eurobonds to be hampered by sanctions
Despite clear demand for Russian rouble-denominated paper amongst the international investment community, US and EU sanctions would prevent many issuers from tapping international markets. Entities that can access dollar markets will do so despite reduced pools of liquidity, whilst the local markets will remain the preserve of sanctioned entities.
14 Sept 2016
VEB aside, Russia’s ‘turn to the east’ more hot air than not
Russia’s VEB is looking eastwards for funding, a move which came just after a fresh round of sanctions from the US. Although there is significant rhetoric around a turn to the east for Russia, it appears more political as many Russian corporates and indeed the sovereign have issued dollar bonds this year.
6 Sept 2016
Will RQFII Reform Woo Investors?
China wants to lure more foreign investors to its markets, in part by easing access to its onshore interbank bond market (CIBM) – which was previously quite exclusive when it came to foreign participation. Will the reforms pay off?
19 Aug 2016
Indian corporates looking abroad for funding
A burdened banking sector has meant that Indian corporates have had to look elsewhere for funding. Investor demand for higher yielding instruments has led to a lot of activity from the Indian corporate space on the international markets over the last week, a trend which is likely to continue as long as the global economy remains stable.
2 Aug 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