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Mar 19, 2014

Offshore Russian stocks attract premium in jittery markets

LONDON, March 19 (Reuters) – Offshore Russian stocks are
trading at a high premium to onshore stocks, brokers and
analysts said on Wednesday, as traders worry about access to
domestic Russian markets.

The higher price for offshore stocks – global (GDR) or
American (ADR) depositary receipts – compared with the locally
listed stocks mirrors the premium investors have been paying for
offshore derivative contracts in the rouble currency.

Mar 18, 2014
via Global Investing

Russian investing: offshore or onshore

Nerves about the potential impact of sanctions on Russian banks and the orderly functioning of Russian markets are driving investors to trade Russian rouble forwards offshore rather than onshore, even though the central bank told Reuters today it will not impose capital controls

Several Russian companies are also trading at a higher price in the offshore (GDR/ADR) market than the local stock markets, according to research by Bank of America-Merrill Lynch. The price difference  in some cases such as Mobile Telesystems and Magnit is as big as 15-16 percent, BofA/ML notes.

Mar 17, 2014

Offshore rouble premium rises on Russia sanction jitters

LONDON, March 17 (Reuters) – The premium to trade Russian
roubles offshore has increased in foreign exchange derivative
markets, traders and brokers said on Monday, as market
participants worry that onshore rouble contracts might not be
honoured.

The United States and European Union slapped sanctions on
Russian and Ukrainian officials after Crimea voted on Sunday to
secede from Ukraine and join Russia. Among them are two top
advisers to Russian President Vladimir Putin.

Mar 13, 2014

Fickle foreign flows add to problems on home territory

LONDON, March 13 (Reuters) – Foreign investors’ growing
presence in sub-Saharan African financial markets has made those
assets more vulnerable to contagion from losses in bigger
emerging markets and problems on the home turf are not helping.

Drawn by Africa’s fast economic growth, its emerging middle
class and juicy returns offered by frontier markets in the
region, foreign investors have raised their stakes in recent
years.

Mar 12, 2014

MSCI plans to add China A shares to emerging index from May 2015

LONDON, March 12 (Reuters) – Index compiler MSCI plans to
include China’s mainland-based A shares in its benchmark
emerging market index from May 2015, as the country gradually
opens up its markets to foreign investors.

MSCI has started consultations with investors and will make
a final decision in June, the firm said in the consultation
document. (here)

Mar 10, 2014

High-yield bonds draw investors as emerging debt loses them

LONDON, March 10 (Reuters) – Shove over, emerging markets -
high-yield debt has taken your place.

Emerging-market bonds, star performers just a year ago, are
being replaced by high-yielding corporate debt from developed
markets by investors searching for yield.

Mar 6, 2014

Ukraine, Russian assets fall on Crimea vote, sanctions

LONDON, March 6 (Reuters) – Ukrainian and Russian assets
fell on Thursday after Crimea’s parliament voted to join Russia
and the United States ordered sanctions on those involved in
undermining democracy in the region.

Crimea’s Moscow-backed government said a referendum on the
region’s status would take place on March 16, in a dramatic
escalation of the crisis over the Ukrainian Black Sea peninsula.

Mar 5, 2014

Ukraine bonds fall as restructuring mooted; investors weigh options

LONDON, March 5 (Reuters) – Ukraine’s short-dated dollar
bonds plunged by as much as 6 cents on Wednesday after the
country’s finance minister said it may start talks with
creditors on restructuring debt, though Western aid pledges
helped prices to recover.

Ukrainian bond prices have been under pressure for weeks
despite prospects of a multi-billion dollar International
Monetary Fund bailout, as the state of the country’s economy and
the sheer weight of debt repayments made a restructuring likely.

Mar 4, 2014

Russian, Ukrainian assets bounce as immediate tensions ease

LONDON, March 4 (Reuters) – Russian equities, bonds and the
rouble soared on Tuesday and Ukraine’s assets rallied after
Russian moves that investors took as a sign of an easing in
East-West tensions.

Russian President Vladimir Putin said Moscow would only use
force in Ukraine “as a last resort” after ordering troops
involved in a military exercise in western Russia back to base.

Feb 27, 2014

As Europe bids for offshore yuan, exchange rate slide gives pause for thought

LUXEMBOURG, Feb 27 (Reuters) – Bankers and policymakers
across Europe want a slice of the growing market in China’s
offshore currency, but a slowing economy and the yuan’s recent
slide may make investors wary.

In barely five years, China’s gradual liberalisation of its
renminbi, or yuan, currency has inspired a slew of investment
funds based in Hong Kong or elsewhere, including those aimed at
the retail market.

    • 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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