Compared to other EM regions, LatAm is likely to prove a popular investment destination. Strong fundamentals and pro-business leaders have contributed to this, but dropping commodity prices and lagging growth in China could still have a negative impact in the future.
25 Jul 2016
The EIB is set to invest heavily in Egypt over the next year, but other investors are likely to remain cautious about investing in the country. The FX mismatch and dollar availability are the primary barriers. Investors suggest opportunities could exist in sectors linked to exports or consumer demand, which the weakening of the Egyptian pound will likely boost.
25 Jul 2016
Colombia has seen issuance volume decline in local and international markets as cash flow pressures and inflation begin to weigh on the country’s corporates, according to analysts from Fitch Ratings. Investors seem more optimistic about the long-term viability of the Colombia’s capital markets.
15 Jul 2016
Kenya’s banking sector has seen a worrying rise in NPLs and a decaying deposit base. With three banks placed under receivership by Kenya’s Central Bank in less than a year and stiffer capital adequacy regulations in the offing, we speak with Linet Muriungi, Head of Research and Edwin Chui, Senior Fixed Income and Banking Sector Analyst at Dyer & Blair Investment Bank about the impact on the…
14 Jul 2016
The last three months have seen the largest increase in emerging market growth since 2014, while May saw the largest monthly advance in four years, according to data released by the IIF.
13 Jul 2016
Stronger jobs growth data out of America sent US equities to all-time highs earlier this week, with some anticipating a more aggressive timetable for a US interest rate hike. EM analysts and portfolio managers caution that other significant risks are present and could complicate such a move.
12 Jul 2016
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
EM high yield (HY) corporate bonds have outperformed US HY corporate bonds this year and default rates are significantly lower, particularly now, but also over the cycle.
7 Jul 2016
EM corporate debt levels remain high, but unlikely to grow significantly. There is a substantial amount of corporate debt that will require refinancing over the next two years, which could be complicated by the actions of the Fed, but many EMs have sufficient liquidity to enable local corporates to access funding internally to finance their burdens.
7 Jul 2016
The ongoing corruption scandal in Brazil has put off investors, with yet another company falling foul of the authorities. Corruption scandals alone are not likely to put off investors, and recent events could signal a turning point in the ‘car wash’ scandal, which would only aid investment.
5 Jul 2016