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May 8, 2013

Slow western growth, geopolitical risks haunt emerging Europe

LONDON, May 8 (Reuters) – Stuck between sluggish economies
in the west and rising geopolitical risks in the Middle East,
emerging European countries are struggling to attract investment
and boost growth.

The European Bank for Reconstruction and Development will
discuss ways of “Innovating for Growth” at its annual meeting
this weekend in Istanbul – seen as the cornerstone of its region
of operation of central and eastern Europe and North Africa.

May 3, 2013

Bond yields too low? There’s always Rwanda

LONDON, May 3 (Reuters) – Last summer, euro zone member
Spain was struggling to borrow money for 10 years at a yield
below 7 percent. Last week, Rwanda had no trouble.

Rock-bottom interest rates in the developed world have left
investors scrambling for yield, while economies in the
developing world are eager to raise capital to boost their
economies and reduce their dependence on international aid.

Apr 28, 2013

Investors hunt for emerging bank shares as euro casts shadow over west

LONDON, April 28 (Reuters) – The euro zone debt crisis has
made investors wary of western European bank stocks and they are
seeking more value and less risk in banks in central Europe,
Russia, Turkey and even Africa.

The problems of western Europe’s banking sector, from losses
on Greek debt to a bailout for Cyprus that hit big depositors or
the governance scandal at Italy’s Monte dei Paschi,
have undermined old assumptions about relative stability.

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.

    • 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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