Macro
Nigeria mulling Panda bonds as funding gap widens
Nigeria looks likely to tap a broad range of funding sources including the Chinese offshore bond market in a bid to stem the impact of declining oil and commodity-related revenues and finance key infrastructure initiatives.
11 Apr 2016
Is the emerging market rebound set to bounce back?
Emerging markets have reacted well to dovish signals from the US Federal Reserve. The rise in commodity prices has also contributed to their performance. However future interest rate increases combined with a slowdown in the rise in commodity prices could end the rebound.
6 Apr 2016
EM Corporates: More of 2015?
The EM asset class entered 2016 with challenging macroeconomic backdrop, supportive technicals and size difficult to ignore. But the divergence in performance between corporates and sovereigns has been clearly set in 2015 and is expected to continue.
6 Apr 2016
Is the junk bond revival nothing but rubbish?
Junk bonds and distressed debt from emerging markets has seen a brief rebound on the back of rising commodity prices. However, with the increase in commodity prices slowing, sub-investment grade debt may lose its gains.
5 Apr 2016
Approved: Argentina’s debt deal
Argentina has gained permission to re-join the international capital markets, and will likely enter the markets with a large issuance. An already saturated debt market and global economic headwinds could affect any issuance, however, the scarcity of Argentine debt could prove too tempting for many investors to pass up.
1 Apr 2016
China to boost exposure of yuan to foreign markets
China could increasingly utilise foreign currencies in its domestic market in an attempt to make trading more profitable for Chinese companies. It could also issue bonds in a variety of the IMF’s reserve currencies to increase the exposure of the yuan to foreign markets.
1 Apr 2016
Mexico’s outlook lowered by Moody’s
Moody’s decision to lower Mexico’s credit outlook is linked to the performance of the state oil company. Any support given to Pemex by the sovereign could impact its current fiscal targets, which could contribute to a downgrade. However, as one of the best performers in emerging markets, it is unlikely that a downgrade would strongly affect foreign appetite for Mexican debt.
1 Apr 2016
Emerging market inflows on the rise
Despite a still unsteady global economy, dovish signals from the US Federal Reserve, rising oil prices and relative calm in China among other factors, capital inflows into emerging markets increased dramatically over the previous month. However, analysts warn external factors could still dent investors’ renewed interest in emerging economies.
31 Mar 2016
The China Convergence
Despite a volatile second half of 2015 and beginning 2016 on a rather precarious note, little seems to stand in China’s way as it seeks to position the yuan as a global reserve currency and supplant the US to become the global benchmark for fixed income.
22 Mar 2016
If oil has bottomed out, could emerging markets recover?
With oil prices looking up will emerging markets follow?
15 Mar 2016