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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.

Mar 15, 2013
via Global Investing

Junk-rated EM sovereigns — so last year

With rising U.S. Treasury yields posing a threat to emerging debt.  JP Morgan is now advising investors to cut holdings of sovereign dollar bonds to marketweight from overweight. And it suggests doing that by reducing exposure to the riskiest (and usually the highest-yielding) emerging markets, listed on its NEXGEM sub-index.

These bonds, with high yields and low credit ratings, basked in the glow of investor appetite last year when U.S. and German bonds were yielding next to zero and the  euro zone looked in danger of falling apart. Emerging debt issuance last year topped $300 billion while junk credits such as Zambia and Guatemala saw massive demand for their debut bond sales.   (Sales of junk-rated corporate bonds likewise boomed in the yield-seeking frenzy).

Mar 13, 2013

India inflation must fall to 4-6 pct, budget may help-cbank

March 13 (Reuters) – India’s stubbornly high inflation must
come down to a 4 to 6 percent range, the country’s central bank
chief said on Wednesday, noting full implementation of this
year’s budget will have a “softening impact” on price growth.

“The Reserve Bank has to ensure that inflation is brought
down to the threshold level and is maintained there,” Duvvuri
Subbarao, the Governor of the Reserve Bank of India (RBI)told
students in London.

Mar 12, 2013

Kenya election outcome cheers investors but worries remain

LONDON, March 12 (Reuters) – Kenya’s peaceful election has
given investors an added impetus to buy assets in East Africa’s
biggest economy, but a legal challenge to the result and the
possible international trial of the winner could dampen
enthusiasm.

Kenya, like many other frontier markets, is enjoying strong
growth, with its rising consumer class and high bond yields
attracting international investors.

Mar 11, 2013

Small cap stocks step into emerging market spotlight

LONDON, March 11 (Reuters) – Smaller emerging markets
companies are drawing interest from investors wary of wilder
frontier economies but willing to delve deeper into familiar
territory in pursuit of returns.

Buying shares in firms with market capitalisations of less
than $3 billion offers a way to tap into economies in which
demand from a rising middle-class for consumer brands, telecoms
and financial services is driving rapid growth.

    • About Carolyn

      "I have worked at Reuters for more than 20 years but I switched in Sept 2014 to a new beat - insurance and fund management. I write about things like insurance deals, fund trends, geopolitical risks insured by Lloyd's and I'm grappling with understanding company accounts. In my vanishingly small spare time, I hope to contribute more to Reuters entertainment file."
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