If you’re an emerging market borrower, it seems like it’s a great time for sorting out those old troublesome debts as pumped-up yield appetite in the fixed income universe encourages another bout of selective amnesia among creditors and bond investors.
Serial defaulter Ivory Coast met investors in London this week, next stop New York later today, to discuss a new schedule for missed coupons on its $2.3 billion bond due 2032.
LONDON, Oct 18 (Reuters) – Worries about a chaotic
withdrawal of assets by cash-strapped western European banks
from central and eastern Europe appear so far to have been
The previously feared draining of cash has been less than
Around 75 percent of banking assets in central and eastern
Europe are owned by western European banks – with Bulgaria,
Hungary and Romania particularly exposed.
LONDON (Reuters) – New funds targeting debt issued by emerging market companies have helped push outstanding issuance past $1 trillion as investors chase high returns while sidestepping problems in developed economies.
Total volumes of debt issued by emerging companies are up tenfold since 2000 and the size of the market now rivals that for U.S. high-yield bonds. Investors are attracted by companies’ strong balance sheets and rising demand for consumer goods and financial services in most emerging economies.
LONDON (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.
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
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.
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.
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.
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.
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.