Just as Hungary is worrying foreign investors with a plan to help households laden with foreign currency mortgages – likely to prove expensive for its banks – its trade bank has come up with an interesting structure for a planned bond.
State-owned Eximbank has been holding a roadshow this week for a two-part bond, with one part of the bond guaranteed by the World Bank’s risk insurance arm, Miga.
LONDON, July 19 (Reuters) – Bonds of Turkish banks,
Ukrainian state firms and central European miners were among the
worst performers in a recent sell-off in emerging debt and
investors are on alert for further price falls or even defaults.
The emerging corporate debt market has boomed in recent
years, with the volume of outstanding debt passing $1 trillion
last year and record issuance seen in the first half of 2013.
LONDON, July 11 (Reuters) – Foreign investors sitting on
losses of 5-15 percent in Turkey are likely to cut and run
without a swift and substantial interest rate rise to stabilise
the plunging lira.
Foreign fund managers have yanked around $3 billion from
Turkish stocks and bonds since the last week of May, central
bank data shows, reversing only a tiny part of the investment
inflows the country has received in recent years.
LONDON, July 10 (Reuters) – Twice-bailed-out Greece may not
relish its impending switch to the world of emerging markets,
but the move should bring with it new risk-seeking investors.
Index compiler MSCI said last month it would downgrade
Greece to emerging market status from November, citing weak
market access and the small number of Greek stocks that met the
criteria for inclusion as a developed market.
Political risks appear to be rising in emerging markets, but how do you measure them?
Protests in Egypt – leading to the ousting of a second president in as many years- Turkey and Brazil have caught investors on the hop this year, causing the kind of market volatility that emerging market bulls had been saying were a thing of the past.
LONDON, July 2 (Reuters) – Developing countries that did not
take advantage of historically low yields by selling
international bonds in the first half of 2013 are finding
themselves left high and dry as borrowing costs rise.
Emerging market borrowers sold more than $200 billion of
bonds between January and July, a record-breaking streak that
culminated in April with the startling sight of Rwanda issuing a
10-year dollar bond at a yield of less than 7 percent.
LONDON (Reuters) – Hard to enter and hard to leave, frontier stock markets from Bulgaria to Pakistan have attracted investors who are in for the long haul, keeping them clear of the worst of the markets storm.
While these less-developed emerging markets suffer from a lack of liquidity, with buyers and sellers struggling to match up at times, that can be a bonus when nervous investors are dashing for the exits elsewhere.
LONDON, June 21 (Reuters) – Bangladesh will delay launching
a debut international dollar bond until after the country’s
upcoming elections, its central bank governor said on Friday.
The south Asian country is one of many frontier economies
which have issued or planned international debt in the past
couple of years, to capitalise on investors’ search for
LONDON, June 20 (Reuters) – Stocks and bond prices plunged
and debt insurance costs soared in a general flight from
emerging markets on Thursday, after the U.S. Federal Reserve
laid out a timetable for turning off the taps on its $85
billion-a-month bond-buying programme.
The MSCI emerging stock index was down by over 3.3
percent, hitting its lowest level since July 2012 and heading
for its biggest one-day fall since Oct 2011, with weekly losses
of more than 6 percent, as U.S. 10-year Treasury yields
surged to 15-month highs.
LONDON (Reuters) – Developed world mining and energy companies operating in Africa should pay more taxes to help the world’s poorest continent climb out of poverty, the president of the African Development Bank said on Sunday.
“The reality is, Africa is being ripped off big time,” African Development Bank president Donald Kaberuka told Reuters, a day after attending a meeting in London with other African representatives ahead of the G8 summit of rich countries on the “triple-T” agenda of trade, transparency and tax.