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Reuters blog archive

from India Insight:

Investors fear for their deposits after Sahara chief’s arrest

The arrest of Sahara chief Subrata Roy last week and the court case over an outlawed bond scheme are raising fears among some investors who worry they will not get their money back.

One of them is Anil. The 30-year-old travel agent put his 200,000 rupees ($3,276) in another investment scheme offered by Sahara, which bills itself as "the world’s largest family." He fears that the case could hurt his investment.

"I have told my agent to surrender my deposit [partially] ... I am worried, but my money will come back, my agent has said," Anil told India Insight, declining to give his last name. "I will hesitate a bit to invest any money now. If the court case goes on, I will redeem all my Sahara investments."

Roy, the 65-year-old head of the Sahara conglomerate which has business interests from shopping malls and life insurance to finance and real estate, was sent to Delhi’s Tihar Jail on Tuesday. Police arrested him after his company failed to comply with a Supreme Court order in 2012 to repay investors in the bond scheme, which the court has said was illegal.

from Global Investing:

The annus horribilis for emerging markets

Last year was one that most emerging market investors would probably like to forget.  MSCI's main equity index fell 5 percent, bond returns were 6-8 percent in the red and some currencies lost up to 20 percent against the dollar.  Here are some flow numbers  from EPFR Global, the Boston-based agency that released some provisional  annual data to its clients late last week.

While funds dedicated to developed markets -- equities and bonds --  received inflows amounting to over 7 percent of their assets under management (AUM), funds investing in emerging stocks lost more than 6 percent of their AUM.

from Global Investing:

Pakistan, Nigeria, Bulgaria… the cash keeps coming

The frontier markets juggernaut continues. Here's a great graphic from Bank of America/Merrill Lynch showing the diverging fund flow dynamic into frontier and emerging equity markets.

What it shows, according to BofA/ML  is:

Frontier market funds with year-to-date inflows of $1.5 billion have decoupled from emerging markets ($2.1 billion outflows year-to-date)

from Breakingviews:

Vietnam is back in the game for buyout firms

By Andy Mukherjee

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

As one of the world’s few remaining communist states, Vietnam’s relationship with foreign capitalists is complex. That hasn’t stopped private equity group Warburg Pincus closing the first tranche of a $200 million investment in the country’s largest mall owner. It’s early days, but for global investors Vietnam may be back in the game.

from Unstructured Finance:

The retailization of the single family home rental play

By Matthew Goldstein

It started slowly but the push by Wall Street into the single family rental market is fast becoming a Main Street play as well.

Last year, one of the big stories on Wall Street and in the U.S. housing market was the push by institutional investors to raise billions of dollars to snap-up foreclosed homes and rent them out while waiting for the right time to sell them. It's become the biggest "long" bet on housing for private equity giants like Blackstone, which has already spent close to $3 billion buying up more than 16,000 foreclosed homes.

from Unstructured Finance:

What investors can look for in 2013

By Matthew Goldstein and Jennifer Ablan

Big money managers do not always agree--that's what makes a market--but if there was one consensus coming out of our just concluded Reuters Investment Outlook Summit, it's that next year will probably be another bang up one for the bond market.

Now the credit markets will have a tough time repeating the kind of numbers put up this year, especially with the Federal Reserve doing its darndest to push down borrowing costs and yields by buying  mortgage backed securities and even Treasuries. Speaker after speaker who joined us in New York said "junk" bonds, corporate debt, mortgage- and commercial-backed securities and even Treasuries "on a trading basis"  should do well for no other reason than credit markets still aren't showing anything close to the kind of froth we saw in the run-up to the financial crisis. The sense is that it may be another 2 or 3 years before we see excesses build up in the system again.

from Unstructured Finance:

UF Weekend Reads

Here's to getting out exclusive stories fast when need be. This week, pay close attention to Jamie Dimon, who will be on the congressional hot seat as he deals with questions over JPM's $2 billion plus trading loss. And without further ado, here's Sam Forgione's weekend reads:

 

From Fortune:

Peter Elkind and Doris Burke add more arc to the "human drama" of MF Global's collapse.

from Expert Zone:

A quick guide to understand your risk profile

(The views expressed in this column are the author's own and do not represent those of Reuters)

"Risk is a part of God's game, alike for men and nations" - Warren Buffett

It is a known fact that practically all investments have a certain degree of risk. But the irony is that though we are aware of this, most of us aren’t really clear about what exactly this risk means and how do we go about measuring our own risk-taking ability. Here is a quick guide on what exactly risk means and how to determine your risk appetite.

from Global Investing:

Inside the Reuters investment polls

The headline news from our Reuters asset allocation polls this month was that not much has changed from December in terms of overall investment positioning, but that there was a decided shift from emerging markets and European stocks to North America.

But buried in the numbers were a couple of other things:

-- Bonds are decidedly unpopular among fund managers. The overall global allocation was the lowest since February.

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