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Apr 25, 2013

Easy markets access can delay reforms in emerging Europe: EBRD

LONDON (Reuters) – Some emerging European countries are able to delay much-needed reforms because they can borrow money in international markets without strings attached, the president of the European Bank for Reconstruction and Development said on Thursday.

With money-printing in the developed world driving investors to seek higher-yielding assets, countries such as Hungary and Ukraine have issued dollar debt this year, avoiding the need to implement unpopular measures to win international funding.

Apr 24, 2013
via Global Investing

Rwanda plays into African debt demand

Rwanda is planning to launch its debut $400 million 10-year Eurobond today, less than two decades (corrects time period) after it was torn apart by genocide. It is the latest chapter in the story of African bond issuance which has stepped up in recent years, exploiting investors’ hunger for yield.

The bond may yield well above 7 percent — attractive at a time when Italian 10-year yields, one of the riskier punts within the euro zone,  have fallen below 4 percent.  Frontier markets broker Exotix has the Rwandan deal as one of its five fixed income trades to watch. Their analysts say:

Apr 9, 2013
via Global Investing

Dim sum looks tasty for Africa

The rising yuan, which hit its highest last week since China’s FX market was set up in 1994,  should boost demand for China’s offshore “dim sum” bond market, and Africa may join in the action.

Trade between China and Africa totaled $200 billion last year, and Standard Chartered expects that to hit $325 billion by 2015, so it makes sense for African governments and companies to hold assets denominated in the renminbi, or yuan as the currency is also known.

Apr 8, 2013
via Global Investing

Greece revs up in slow lane

There’s been plenty of bad news for heavily indebted Greece in the past three years – the banking crisis in neighbouring Cyprus being the latest of the country’s woes – but not all the news is gloomy.

MSCI’s Greece index was one of the developed world’s best performers this year, according to the index compiler’s quarterly survey, giving returns of 14.02 percent.

Mar 28, 2013

Investors head back to safety of bonds – Reuters poll

LONDON (Reuters) – Global investors grew more cautious this month, reacting to the crisis in Cyprus by adding to safe-haven bond positions, though cash buffers fell to a two-year low, Reuters monthly poll of asset managers showed on Thursday.

Investors remain overweight in equities, reflecting faith that the campaign of central banks, particularly in the United States and Japan, to provide cheap money and support economic recovery will keep stock markets rising.

Mar 28, 2013

Investors head back to safety of bonds

LONDON (Reuters) – Global investors grew more cautious this month, reacting to the crisis in Cyprus by adding to safe-haven bond positions, though cash buffers fell to a two-year low, Reuters monthly poll of asset managers showed on Thursday.

Investors remain overweight in equities, reflecting faith that the campaign of central banks, particularly in the United States and Japan, to provide cheap money and support economic recovery will keep stock markets rising.

Mar 26, 2013
via Global Investing

Nigeria’s bad bank: dollar bond on the way?

Nigeria has said it plans a sovereign dollar bond this year, only its second, but could the country’s “bad bank” beat the sovereign to it?

Nigerian state-backed bad bank AMCON was talking to debt investors on a non-deal roadshow in London on Tuesday morning, as it looks to fill a 5 trillion naira  ($31 billion) refinancing gap. It was the second leg of the tour, after the bank visited the west and east coasts of  the United States last week.

Mar 26, 2013

Nigeria inflation likely to hit 10 pct-c.banker

LONDON, March 26 (Reuters) – Nigeria’s inflation is likely
to exceed 10 percent at some point over the next few months, but
will return to single digits by the fourth quarter, Nigeria’s
deputy central bank governor said on Tuesday.

Nigeria’s central bank held rates at 12 percent last week
for the ninth time in a row, citing concerns over ongoing
external price pressures.

Mar 20, 2013

Emerging market switch could boost Greek stocks

LONDON (Reuters) – A switch from developed to emerging market stock indices could rekindle demand for Greek shares, although the crisis-hit euro zone state might sit uncomfortably among the fast-growing economies of Asia and Africa.

Russell Indexes, against whose products some $3.9 trillion of investors’ money is benchmarked, cut Greece to ‘emerging’ from ‘developed’ status this month, while index compilers MSCI and FTSE are also reviewing the country for relegation.

Mar 20, 2013

Analysis : Emerging market switch could boost Greek stocks

LONDON (Reuters) – A switch from developed to emerging market stock indices could rekindle demand for Greek shares, although the crisis-hit euro zone state might sit uncomfortably among the fast-growing economies of Asia and Africa.

Russell Indexes, against whose products some $3.9 trillion of investors’ money is benchmarked, cut Greece to ‘emerging’ from ‘developed’ status this month, while index compilers MSCI and FTSE are also reviewing the country for relegation.

    • About Carolyn

      "I work in London as part of the Reuters investment strategy editorial team, specialising in emerging and frontier markets. I cover emerging bond, stock and FX markets as well as global market themes, and interview emerging market policy-makers when they attend events in London. I started at Reuters in 1993, writing about foreign exchange, government bonds and Eurobonds before switching to emerging markets."
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