Wilbur discusses how the performance of Brazil’s debt markets have shifted over the past year.
14 Aug 2016
The markets appear to believe that the US Fed will be slow in raising interest rates in the future. Although certain EMs will suffer when a hike does occur, investors may hold on to EM fixed-income due to the increasing number of low or negative yielding bonds present across DMs.
10 Aug 2016
The near US$3bn bond issued by the Mexican sovereign demonstrates how in-demand the country’s fixed income assets are. However, unlike in other LatAm countries, there will not be a significant amount of corporate bond offerings as a direct result, as the markets have been open to such entities all year. Nevertheless, a substantial spread rally could see corporates make opportunistic issuances.
9 Aug 2016
Although the appreciation of the Brazilian real is being driven by improving economic fundamentals, there are factors that could cause the currency’s rise to slow. Exporters may suffer, but a stronger real is unlikely to impact investor interest in the country’s assets.
8 Aug 2016
The major economies in Latin America are still providing opportunities for foreign investors, but clouds on the horizon such as slowing growth and external and internal political factors are causing concern. Fresh investment opportunities are however available either in different sectors or in different countries across the region.
4 Aug 2016
The most recent inflation figures from Turkey, although high, are no surprise. The country’s fixed income space and currency have been affected by the performance of Turkey’s economy, but despite recent events, credit activity from, and foreign interest in Turkey will remain strong.
3 Aug 2016
With climate change now firmly on the agenda of most global economies the opportunities emerging around green investment are increasing exponentially.
1 Aug 2016
The EM rally has significantly benefited fixed income across developing economies. Although it will eventually slow, the participation of large institutional flows will yet carry it forward. Mainly negative ratings actions concerning EMs have not affected the rally, as such activity tend to come after the markets have moved forward.
29 Jul 2016
Despite having its outlook downgraded recently, the Chilean banking sector remains relatively stable, particularly compared to others in the region. The country’s economy is also performing relatively well in comparison to its neighbours. There is still substantial foreign investment, although economic growth has slowed. Fears over a return to populist policies are likely overblown, at least…
27 Jul 2016
The Russian Finance Ministry could look to raise additional capital later in the year. Although this could be achieved by the selling of forex reserves, a second Eurobond issuance this year has not been ruled out.
26 Jul 2016