Carolyn's Feed
Oct 4, 2012

Hard slog for London’s offshore yuan bond market

LONDON, Oct 4 (Reuters) – London launched an offshore yuan
currency and bond market to great fanfare six months ago, but
the bond side will struggle to develop unless British and
Chinese authorities take steps to make trading easier.

The need for such measures has become even greater this year
as potential investors have been discouraged from buying yuan
bonds by China’s slowing economic growth and by a slump in
one-year yuan non-deliverable forwards to price in a
depreciation.

Oct 3, 2012

Kazakh wealth fund forges debt deal for No.3 bank

ASTANA/LONDON, Oct 3 (Reuters) – Kazakhstan’s sovereign
wealth fund has rescued the country’s No.3 bank for the second
time in as many years, forging a deal to cut the bank’s $11.2
billion of debt that will see its majority stake rise and
creditors lose less than feared.

The deal triggered a rally in the heavily discounted bonds
of the bank – BTA – as creditors will recover more of
their outlay than seemed likely when BTA defaulted in January.

Oct 3, 2012
via Global Investing

Insuring African farmers against climate catastrophe

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From floods to drought, microfinance companies are looking at ways for farmers in developing countries to cope better with the vagaries of climate change.

According to the Microcredit Summit Campaign, there were over 137 million very poor families worldwide with a microloan in 2010. The industry has grown increasingly sophisticated, though it has also gained a bad reputation in parts of the world for selling very high-interest loans to very poor people, with the Indian state of Andhra Pradesh curbing their use.

Sep 28, 2012

Emerging bond issuance set to top $300 bln in 2012

LONDON, Sept 27 (Reuters) – Investor appetite for yield has
fuelled record bond issuance by emerging market borrowers, and
the 2012 total is set to top $300 billion helped by some players
pre-financing next year’s needs.

Bond markets are benefiting from two major initiatives
announced over the summer to boost economic growth in Europe and
the United States.

Sep 5, 2012
via Global Investing

Competitive, moi? Turkey jumps up the league

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Switzerland tops the World Economic Forum’s competitiveness league¬†for the fourth year running, according to the latest survey out today, while the United States is slipping down the table because of political and economic problems.

But quite a few emerging market countries are jumping up the league.

Charles Robertson at Renaissance Capital highlights Turkey and Nigeria as some of the best performers in the last year, rising 16 and 12 places respectively in the index, which is based on 12 measures, including infrastructure, macro-economic environment, and market size.

Jul 30, 2012
via Global Investing

Emerging market debt with silver pedigree

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Guarantees on emerging market debt need to be silver-plated these days after the defaults of Ukraine’s state energy firm Naftogaz and Kazakhstan’s BTA bank in recent years show implied guarantees are not worth the paper that they weren’t even written on.

Tunisia must have taken that to heart as it issued a dollar bond this month guaranteed by the United States, still rated AAA by two major ratings agencies.

Jul 27, 2012

Four arrested over Ivory Coast U.N. peacekeeper killings

LONDON (Reuters) – Four men have been arrested in connection with the ambush killings in Ivory Coast of seven U.N. peacekeepers on its border with Liberia, Ivory Coast President Alassane Ouattara said on Friday.

An adviser to Ouattara said the four had been arrested in Liberia and would be extradited to Ivory Coast to stand trial.

Jul 19, 2012
via Global Investing

Iran air strike bets on the rise

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Investors are placing larger bets on the chances of an Israeli or U.S. air strike on Iran by the end of the year after a bomb on a bus carrying Israeli tourists in Bulgaria  killed seven people yesterday.

Israel’s prime minister Benjamin Netanyahu said “All the signs lead to Iran”, though Defence Minister Ehud Barak sounded more restrained and Iran denied responsibility. Oil hit a seven-week high above $106 a barrel on supply concerns over tensions in the region.

Jul 19, 2012

UK private equity firm cruises into Myanmar as sanctions ease

LONDON, July 19 (Reuters) – The easing of sanctions in
Myanmar is encouraging western portfolio investors to start
looking at the previously-restricted economy, with one
London-based private equity firm planning to invest in pleasure
cruisers there.

The country of 50 million people is rich in natural
resources such as oil and metals, and its temples and colonial
buildings should attract tourists, but Myanmar has major
infrastructure needs such as for power generation.

Jul 11, 2012

Developed or developing? Try merging markets

LONDON (Reuters) – Investors are criss-crossing the increasingly smudged line between emerging and developed markets as the euro zone crisis challenges traditional perceptions of a safe investment.

This blurring of distinctions was illustrated last month by index compiler MSCI’s surprise decision to review Greece’s stock market for downgrade to emerging market status, usually assigned to poorer countries offering lower liquidity and less open access to trade.

    • 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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