Despite a series of measures introduced by the Indonesian authorities, including six benchmark rate hikes in a year and improved hedging tools, the rupiah has continued to suffer from souring sentiment towards emerging markets. As a result, local banks and corporates are facing increasingly limited funding opportunities, even as Indonesia’s bond market expands at record pace following the…
11 Jan 2019
EM FX ended the week on a firm note as stronger than expected US jobs data fed into risk-on sentiment. Fed Chair Powell also added to the positive sentiment Friday as he addressed basically every area of concern that the markets have had with the Fed. US rates backed up but not by enough to lend the dollar much support. In this current “wait and see” period regarding the US economy and the Fed,…
7 Jan 2019
The spate of trade tariffs introduced by US President Donald Trump’s administration against China in 2018 were a natural manifestation of his anti-globalist agenda and represented one of the first steps towards his long-standing pledge to “Make America Great Again”. But the retrenchment of the US has forced its long-standing allies to rethink their bilateral relationships and search for new…
4 Jan 2019
With its substantial renewable energy ambitions telegraphed for years, industry practitioners often cite India as a potential major driver for the development of the sustainable finance and green bond segments among its emerging market peers. We speak with Vinod Kothari, a Kolkata-based structured finance advisor about why green bond volumes in India are down year-on-year, and the segments…
27 Dec 2018
Global growth concerns are likely to keep EM on its back foot. China and the eurozone reported weak economic data Friday, and even a much stronger than expected US retail sales report was not enough to turn market sentiment.
17 Dec 2018
Asia remains one of the leading regions for climate bond issuance in emerging markets globally, driven by both strong political will to transition towards a cleaner economy and, more fundamentally, a deep need for long-term infrastructure investment. We speak with Shyam Saraf, Director, DCM at MUFG, about how Asia’s climate bond sector is evolving to tackle the infrastructure gap.
13 Dec 2018
Despite its reputation as a heavy emitter of greenhouse gasses, Indonesia’s green sukuk was hailed as a game changer for both Islamic and ESG investing. Luky Alfirman, Director General of Budget Financing and Risk Management, Ministry of Finance in Indonesia believes its inaugural transaction in February is the first of many to come as the government looks to double down on its commitment to…
29 Nov 2018
Latin America may have more to gain than lose in a U.S.-China trade dispute, so long as it does not spiral into a recession-provoking trade war, writes John Price.
17 Aug 2018
The trailblazing issuance by the state government could open doors to China’s onshore market to other Middle East issuers as part of the “Bond Connect” initiative.
2 Aug 2018