LONDON (Reuters) – The prospect of a hefty Greek government debt restructuring and writeoff has sent the bonds into a twilight zone that’s attracting specialist distressed-debt traders more used to dealing with defaulted emerging sovereigns like Argentina.
Greece was ditched last year from developed country government bond indices that are typically tracked by the big, often conservative, global institutional funds.
LONDON, Oct 12 (Reuters) – Emerging stocks hit three-week
highs for a second successive day on Wednesday and sovereign
debt spreads tightened, helped by a jump in Chinese stocks and a
more positive outlook on the euro zone debt crisis.
Markets have been in thrall to each step in the euro zone’s
attempts to resolve its debt woes, and recent optimism has taken
riskier emerging assets higher.
Oct 3 (Reuters) – Spooked by concerns that Franklin
Resources Inc’s (BEN.N: Quote, Profile, Research, Stock Buzz) flagship fund is overexposed to
volatile emerging markets, investors last week pulled more
money out of the best-selling fund than they put into it for
the first time in almost a year.
Withdrawals of $393.6 million during the week ended Sept.
28 marked the first week of outflows from the U.S. registered
portion of Franklin’s Templeton Global Bond Fund TPINX.O
since the week ended Dec 15, 2010, according to data from
Lipper, a Thomson Reuters unit.
LONDON (Reuters) – Sovereign and corporate borrowers from emerging economies are unlikely to meet ambitious full-year targets for new debt sales after a torrid third-quarter for high-yield bonds as financial markets froze on double-dip recession fears.
The sector borrowed a record $300 billion (192 billion pounds) in 2010, according to some industry estimates, taking up the slack for the absence from the market of some high profile sovereign issuers in the euro zone.
LONDON, Sept 15 (Reuters) – Emerging stocks bounced 1
percent on Thursday, recovering some ground from 14-month lows
as euro zone policymakers declared their support for Greece,
though the forint was hurt by recent Swiss franc loan repayment
French President Nicolas Sarkozy and German Chancellor
Angela Merkel said in a joint statement on Wednesday they were
determined to keep Greece in the euro zone.
LONDON, Sept 13 (Reuters) – The euro zone debt crisis and
concern about local foreign currency loan exposure hit the
larger emerging European economies on Tuesday, taking the zloty
and forint to new lows, and broader emerging stocks to
Greek debt insurance is starting to be quoted upfront, a
sign of extreme distress for the debt, as conflicting reports
about the possibility of China buying Italian debt caused market
uncertainty on Tuesday.
LONDON, Sept 8 (Reuters) – Emerging stocks rose slightly on
Thursday as investors awaited the European Central Bank’s
monthly meeting and speeches by top U.S. policymakers, but local
currency debt continued to perform strongly on monetary easing
The European Central Bank is expected to leave rates
unchanged on Thursday and may signal an end to its
five-month-old rate rise cycle, though low world growth has
encouraged some market expectations of future rate cuts.
LONDON (Reuters) – In a five-star hotel overlooking the Thames a month ago, investment manager Eric Guichard stood up to address a crowded cocktail party on how African expatriates could invest their savings in projects back home. The response from the chattering financial professionals was unusual.
“When I see what my family is doing with the money I send them…” Guichard, who comes from Senegal, told the party, “they are leasing a house to the U.S. embassy at $5,000 a month, they are buying Persian rugs, they are importing taxis from Belgium, they are buying and leasing power generation units…”
LONDON, Aug 31 (Reuters) – In a five-star hotel overlooking
the Thames a month ago, investment manager Eric Guichard stood
up to address a crowded cocktail party on how African
expatriates could invest their savings in projects back home.
The response from the chattering financial professionals was
“When I see what my family is doing with the money I send
them…” Guichard, who comes from Senegal, told the party,
“they are leasing a house to the U.S. embassy at $5,000 a month,
they are buying Persian rugs, they are importing taxis from
Belgium, they are buying and leasing power generation units…”
LONDON (Reuters) – World stocks hit a 1-1/2 week low on Friday, on track for their biggest weekly loss since August 2010, as a Moody’s threat to downgrade Spain revived fears the euro zone crisis is spreading, and investors eyed a looming deadline for U.S. debt talks.
U.S. stock futures dropped, indicating a weaker open on Wall Street, and the dollar hit a four-month low against the safe-haven yen, as U.S. lawmakers made little progress in breaking the deadlock over raising the debt ceiling and avoiding a default.