Senior Correspondent, New York
Daniel's Feed
Mar 22, 2015

Insight – Sovereign issuers seek to thwart Argentina-style attacks by funds

NEW YORK (Reuters) – Government bond issuers are adopting new standards intended to thwart a strategy that’s plagued Argentina for 13 years, in which buyers snap up distressed debt for pennies on the dollar and then hold out for full payment after other investors have agreed to restructure.

Since August, as many as 12 of 22 recent emerging market issuers including Kazakhstan and Mexico have inserted language in their bond prospectuses that makes it prohibitively expensive for a single holdout to block a restructuring settlement that the majority of creditors may have accepted. This week Ecuador, which defaulted in 2009, issued new bonds that incorporate the language, developed by the International Capital Markets Association.

Mar 22, 2015

Sovereign issuers seek to thwart Argentina-style attacks by funds

NEW YORK, March 22 (Reuters) – Government bond issuers are
adopting new standards intended to thwart a strategy that’s
plagued Argentina for 13 years, in which buyers snap up
distressed debt for pennies on the dollar and then hold out for
full payment after other investors have agreed to restructure.

Since August, as many as 12 of 22 recent emerging market
issuers including Kazakhstan and Mexico have inserted language
in their bond prospectuses that makes it prohibitively expensive
for a single holdout to block a restructuring settlement that
the majority of creditors may have accepted. This week Ecuador,
which defaulted in 2009, issued new bonds that incorporate the
language, developed by the International Capital Markets
Association.

Mar 20, 2015

Ukraine expects to issue U.S.-backed debt by end of April – finance minister

NEW YORK (Reuters) – Ukrainian Finance Minister Natalia Yaresko said on Friday she has begun meeting with the embattled nation’s main creditors and expects to issue $1 billion (678 million pounds) in U.S. government-backed debt by the end of April as part of a larger IMF-backed loan package.

“People are taking U.S. government risk in this case. That is why they give a credit guarantee, otherwise we wouldn’t have access to the market at this time,” Yaresko told Reuters in an interview before speaking to the Council on Foreign Relations in New York.

Mar 13, 2015

Dollar-buying momentum trumps weak U.S. data, euro skids lower

NEW YORK, March 13 (Reuters) – Dollar-buying momentum lifted
the greenback to a fresh 12-year high against the euro on
Friday, overcoming disappointing U.S. inflation and consumer
sentiment data that would normally weaken it.

Positioning ahead of the Federal Reserve’s monetary policy
meeting next week was also seen as a potential reason for the
seemingly incongruous move up by the dollar, analysts said.

Mar 13, 2015

Trading volume of 2014 emerging market debt grew 6 percent to $5.922 trillion: EMTA

NEW YORK (Reuters) – The trading volume of emerging market debt grew 6 percent to $5.922 trillion in 2014 from the previous year, amid sharp drops in the sector’s currencies, interest rates and key commodity exports, a new survey showed on Friday.

Fourth-quarter volumes, however, declined 8 percent to $1.210 trillion from the same period a year earlier, EMTA, the association for the emerging markets debt trading industry, said in a statement.

Mar 13, 2015

Trading volume of 2014 emerging market debt grew 6 pct to $5.922 trln-EMTA

NEW YORK, March 13 (Reuters) – The trading volume of
emerging market debt grew 6 percent to $5.922 trillion in 2014
from the previous year, amid sharp drops in the sector’s
currencies, interest rates and key commodity exports, a new
survey showed on Friday.

Fourth-quarter volumes, however, declined 8 percent to
$1.210 trillion from the same period a year earlier, EMTA, the
association for the emerging markets debt trading industry, said
in a statement.

Mar 13, 2015

Dollar-buying momentum trumps weak U.S. data, euro off 1 percent

NEW YORK (Reuters) – Dollar-buying momentum lifted the greenback against its major rivals on Friday, overcoming disappointing U.S. inflation and consumer sentiment data that would normally weaken it.

Positioning ahead of the Federal Reserve’s monetary policy meeting next week was also seen as a potential reason for the seemingly incongruous move up by the dollar, analysts said.

Mar 12, 2015

Dollar rally stalls, euro climbs from fresh 12-year low

NEW YORK (Reuters) – The euro extended gains against the dollar on Thursday after surprisingly weak U.S. February retail sales data, recovering from an earlier 12-year low in Asian trade.

Since the start of the year the euro has suffered a 12 percent decline, careening toward parity with the greenback as monetary policies in Europe, and elsewhere around the world, ease. This is in contrast to stronger U.S. economic growth and expectations the Federal Reserve will start raising interest rates later this year, attracting cash seeking higher returns.

Mar 9, 2015

Dollar rally stalls, slips back from 11-1/2-year high vs euro

NEW YORK, March 9 (Reuters) – The dollar fell from an
11-1/2-year high versus the euro on Monday as investors took
profits from gains made after last week’s strong U.S. employment
report helped cement expectations the Federal Reserve will raise
U.S. interest rates this year.

“We seem to be taking a breather here, consolidating gains
made off the nice jobs report. It is going to take something
else to get us back down below the $1.0760 range, but we’re not
too sure what that immediate catalyst will be, given the
economic calendar is light this week,” said John Doyle, director
of markets at Washington, D.C.-based Tempus Inc.

Mar 9, 2015

U.S. dollar eases off post-payrolls highs

NEW YORK (Reuters) – The dollar fell from multi-year highs on Monday as investors took profits from gains built on a view that last week’s strong U.S. employment report helped cement expectations the Federal Reserve will raise U.S. interest rates this year.

After Friday’s unexpectedly strong nonfarm jobs data for February, the dollar had extended its gains against the euro to a fresh 11-1/2-year high.

    • About Daniel

      "Senior Correspondent covering global financial markets, investing and foreign policy. I'm New York-based with 20+ years of experience in text, TV and radio. My current post lets me roam across all asset classes and geography, from the developed to the emerging markets. I've reported and taught journalism in Asia, Europe, Latin America and the United States."
      Joined Reuters:
      1997
    • More from Daniel

    • Contact Daniel

    • Follow Daniel