Macro
Not everything that falls goes up
It is natural for a country’s investment cycle to be more volatile than the GDP cycle, since investment decisions are more affected by the overall economic picture than by household consumption or government spending, which are more stable.
22 Jun 2016
Leverage weighing on some Brazilian corporates more than others
Brazilian companies are facing rising debt leverage ratios due to a volatile currency and low economic growth across the country. Although the telecoms company Oi has filed for bankruptcy, from which it could struggle to return, other telecoms investments remain positive, much more so than in the country’s aviation sector, where Gol is also struggling to refinance its debt.
21 Jun 2016
European currencies stable despite Brexit woes
Although a Brexit vote will affect the global markets, the CEE region and in particularly the UK’s larger trading partners within the region such as Poland will be most heavily impacted. However, although concerns over Brexit have caused fluctuations within these markets’ currencies, they have remained relatively resilient over the course of the last month.
21 Jun 2016
Standing out amongst Argentine debt
There are an increasing number of issuers coming to the market in Argentina. Whilst high quality corporates will not be too significantly affected by the skewed pricing that has resulted from the number of issuances, smaller corporates and provinces may need to offer significant yields to attract demand.
20 Jun 2016
Can emerging market yields tempt developed market investors?
Although developed market bond yields are hovering around the 1% mark and are even pushing into negative territory for some countries’ sovereign bonds, there is unlikely to be an uptake in better yielding emerging market debt from DM investors. Nevertheless, EM assets do constitute part of global high yield and global investment grade portfolios.
20 Jun 2016
EM debt trading on the rise
Emerging market debt trading volumes have surpassed the previous year’s figures on an improving risk sentiment amongst investors. Brazil in particular saw its Eurobonds being widely traded as yield hungry investors took advantage of the country’s recent economic situation.
17 Jun 2016
Africa’s foreign funding dilemma
Although many African borrowers encounter difficulties when borrowing in foreign currencies due to oil prices, exchange rates and high levels of leverage, multilateral lending does provide access to wider funding, and the sukuk markets could widen a borrowers’ investor base.
17 Jun 2016
Emerging Markets: A Brief Chronicle Of The Asset Class
The progression from international investing to the creation of a specific emerging markets investment category actually evolved over a long period of time and reflects the interesting evolution of global investing in general.
16 Jun 2016
Russian corporates tuck into reserves
Russian corporates face large upcoming debt maturity repayments over the coming years, with the markets seeing a sharp rise in corporate debt buybacks. However, as many Russian entities have acquired large dollar reserves from previous issuances, many Russian bond buybacks are likely to be funded by reserves.
16 Jun 2016
Private beats public on EM debt concerns
Emerging market debt levels are on the rise. Public sector debt has grown substantially, largely from countries reliant on commodity exports. However the real concern is over EM private sector debts, which since the financial crash have been steadily increasing.
15 Jun 2016