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Money managers under the microscope
from Global Investing:
Emerging corporate debt tips the scales
Time was when investing in emerging markets meant buying dollar bonds issued by developing countries' governments.
How old fashioned. These days it's more about emerging corporate bonds, if the emerging market gurus at JP Morgan are to be believed. According to them, the stock of debt from emerging market companies now exceeds that of dollar bonds issued by emerging governments for the first time ever.
JP Morgan, which runs the most widely used emerging debt indices, says its main EM corporate bond benchmark, the CEMBI Broad, now lists $469 billion in corporate bonds. That compares to $463 billion benchmarked to its main sovereign dollar bond index, the EMBI Global. In fact, the entire corporate debt market (if one also considers debt that is not eligible for the CEMBI) is now worth $974 billion, very close to the magic $1 trillion mark. Back in 2006, the figure was at$340 billion. JPM says:
The international primary market for EM has transformed into a corporate debt market, with sovereign issuance now less than one-third of total EM external issuance.
from Global Investing:
Emerging corporate debt tips the scales
Time was when investing in emerging markets meant buying dollar bonds issued by developing countries' governments.
How old fashioned. These days it's more about emerging corporate bonds, if the emerging market gurus at JP Morgan are to be believed. According to them, the stock of debt from emerging market companies now exceeds that of dollar bonds issued by emerging governments for the first time ever.
Morning Line-Up: Crest Nicholson, Credit Suisse/Apollo, Christmas online
News and views on the asset management industry from Reuters and elsewhere:
Crest Nicholson lenders eye debt/equity swap – FT
Credit Suisse sells soured property loan to Apollo – Reuters
The morgue after Christmas
He said at the Reuters Restructuring Summit in London that by the end of the year banks will issue “in patient”, “out patient” or “morgue” judgements as they go about the business to decide who gets much needed loans and who does not.
Morning line-up
Hedge fund stories from the past 24 hours from Reuters and elsewhere:
EU directive could be softened, says Lib Dem chair - Guardian
US targets offshore approved loans – Reuters
Fears grow for hedge fund on US financials losses - FT
Slumping energy demand over, says fund manager Melis – Bloomberg
