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Apr 11, 2014
via Global Investing

Toxic trio turns tantalising

Dubbed the Toxic Trio earlier this year,  the high-yield bond markets of Argentina, Ukraine and Venezuela are starting to look a lot more appealing.

Argentina and Venezuela were the biggest beneficiaries of the recent rally in emerging market debt, according to data from JP Morgan, which says it has added an overweight Argentina position to its existing overweight in Venezuela, and has Ukraine at market-weight:

Apr 10, 2014

Emerging stocks near 5-month highs, China gains

LONDON, April 10 (Reuters) – Emerging-market stocks rose to
their highest in nearly five months on Thursday, as attractive
valuations brought back investors and Chinese stocks rallied on
a new cross-border investment rule.

Worries about the winding down of the Federal Reserve’s
bond-buying programme, lack of domestic reforms and weak
earnings data have been driving investors out of emerging
markets since the middle of last year. Now the tide has turned,
despite concern about the longer-term outlook.

Apr 2, 2014
via Global Investing

And the biggest loser was…Belgium

The largest downswing in the BlackRock Sovereign Risk Index over the past quarter was not Ukraine, despite the annexation of its Crimea region and Russian troops on its borders, but Belgium.

Belgium, part of the euro zone’s core, fell four points in the index to 31st place, due to the amount of debt due this year. BlackRock says:

Apr 1, 2014

Investors look beyond anti-gay law and stick with Uganda

LONDON, April 1 (Reuters) – Fuzzy guidelines on ethical
investing and aid donors’ timid response to Uganda’s new
anti-gay law have reassured fund managers and private equity
firms about continuing to invest in the newly oil-rich east
African country.

Uganda signed legislation this year which strengthened
punishments for anyone caught having gay sex, imposing jail
terms of up to life for “aggravated homosexuality” – including
sex with a minor or while HIV-positive. It also criminalised
lesbianism for the first time.

Mar 31, 2014

Emerging market quarterly bond issuance tops $100 bln

LONDON, March 31 (Reuters) – Emerging market borrowers
raised just over $100 billion worth of debt in the first quarter
of 2014, slightly below year-ago levels as geopolitical noise
and uncertainty over U.S. Federal Reserve plans dampened
investor appetite.

Emerging sovereign and corporate issuers launched $106.2
billion in hard currency bonds between Jan. 1 and March 27, data
compiled by Thomson Reuters shows, well below the $124.5 billion
that was launched in the first quarter of 2013.

Mar 20, 2014

Dollar hits three-week high, world stocks fall as U.S. rate rise comes into focus

LONDON (Reuters) – The dollar hit three-week highs against a basket of currencies and stocks and bonds fell across the globe on Thursday as investors positioned for a speedier rise in U.S. interest rates than previously thought.

Global stocks as measured by the MSCI world equity index dropped 0.9 percent after Federal Reserve Chair Janet Yellen said on Wednesday the U.S. central bank might end its bond-buying programme this autumn, and could start to raise interest rates around six months later.

Mar 20, 2014

Dollar hits 3-week high, stocks fall as US rate rise comes into focus

LONDON, March 20 (Reuters) – The dollar hit three-week highs
against a basket of currencies and stocks and bonds fell across
the globe on Thursday as investors positioned for a speedier
rise in U.S. interest rates than previously thought.

Global stocks as measured by the MSCI world equity index
dropped 0.9 percent after Federal Reserve Chair
Janet Yellen said on Wednesday the U.S. central bank might end
its bond-buying programme this autumn, and could start to raise
interest rates around six months later.

Mar 20, 2014

Dollar upbeat on rate rise expectations, bonds fall

LONDON (Reuters) – The dollar steadied at higher levels on Thursday and stocks and bonds fell across the globe as investors positioned for U.S. interest rates to rise sooner and faster than previously thought.

Global stocks as measured by the MSCI world equity index .MIWD00000PUS dropped 0.6 percent, adding to the previous day’s losses after Federal Reserve Chair Janet Yellen said the U.S. central bank might end its bond-buying program this autumn, and could start to raise interest rates around six months later.

Mar 20, 2014

Dollar upbeat on rate rise expectations

LONDON (Reuters) – The dollar steadied at higher levels on Thursday and stocks and bonds fell across the globe as investors positioned for U.S. interest rates to rise sooner and faster than previously thought.

Global stocks as measured by the MSCI world equity index dropped 0.6 percent, adding to the previous day’s losses after Federal Reserve Chair Janet Yellen said the U.S. central bank might end its bond-buying program this autumn, and could start to raise interest rates around six months later.

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.

    • 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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