Macro
Turkish Participation Banks Grow as Sukuk Outlook Improves
Participation banks have scaled up their retail outfits rapidly over the past few years, consistently besting average growth rates in the Turkish banking sector, and analysts are optimistic about the health of the country’s Islamic capital markets.
18 Nov 2016
Malaysian NDF Ban Reinforcement Puts Investors on Back-Foot
Malaysia’s Central Bank recently began reinforcing a ban on offshore Malaysian ringgit trades in a bid to improve monitoring and management of an already battered currency. Some analysts believe the move, which comes at a time when EM sentiment is already quite fragile, may threaten foreign fixed income investment and FDI in the country.
18 Nov 2016
Turkey: An Economy in Need of Transformation
Without a strong revival on the fixed income investment outlook for Turkey, analysts remain bearish on the country’s prospects. As Turkey’s relatively young population moves into the workforce en masse, hopes for the country’s longer-term prospects hinge on confidence in an economic and structural evolution long overdue.
16 Nov 2016
Russian Bonds Remain Resilient on Corruption-Related Events
Russia’s Economy Minister has been accused of demanding a US$2mn bribe from Rosneft to facilitate the privatisation of another state oil company, Bashneft, in what is building up to be one of the highest-profile corruption cases in modern Russian history. Despite this, investors are unlikely to be put off Russian assets due to their recent strong performance.
15 Nov 2016
EM Assets Beat US Treasuries Despite Rate Hike Expectations
EMs are experiencing heightened volatility on expectations that rising interest rates in the US under a Trump Presidency will lead to higher returns on currently record-low government debt. However, inflation fears are making longer dated US debt more risky than EM assets, which have retained much more of their value.
11 Nov 2016
Middle East Sovereigns Look to LatAm for Long-Term Investments
Argentina looks set to further profit from capital inflows from the Middle East. Despite liquidity concerns in the region from low oil prices, GCC countries are eyeing up Latin America as a long-term investment destination.
9 Nov 2016
South African Fundamentals Boost to Credit Despite Expected Downgrade
South Africa’s expected downgrade is unlikely to significantly rock the markets as they are likely to have pre-empted the rating agencies’ decision, factoring in a likely downgrade. Nevertheless, there will be some short-term volatility, but relatively strong fundamentals, low liabilities and a tentatively improving rand mean that the country’s debt could be a worthwhile buy when the downgrade…
9 Nov 2016
Will China’s CEE €10bn Fund Open Doors to Europe?
Several years of discussions between China and the Central and Eastern European (CEE) states has finally manifested itself into a concrete deal – an US$11.15bn investment fund for projects in the region. But will it create a pipeline for further Chinese investment?
8 Nov 2016
Indian Banks to Issue Masala Bonds Despite Pressured Finances
The Reserve Bank of India’s decision to allow Indian banks to issue masala bonds is likely to lead to a new flow of issuance despite these lenders facing high NPL ratios and strained liquidity from legacy loans. Whilst the proceeds are likely to be used to boost capital to conform with the implementation of Basel III, the RBI is looking to coax its banks back into financing infrastructure.
8 Nov 2016
Strength of Andean Economies Drives Investors to Corporate Debt
Unlike other metals, copper prices have stayed around their January lows, which have led Chile’s Codelco to lower its output. This is unlikely to impact copper prices much, as other Andean countries are ramping up exports of the commodity. The weaker fiscal position of Codelco is actually attracting investment, however, as the assets of Andean nations such as Chile and Peru do not offer…
7 Nov 2016