Global Investing

September’s bond bonanza

September 16, 2013

What a half-month it has been for bond issuance! As we wrote here, many borrowers  — corporate and sovereign;  from emerging markets and developed  — have seen  this period as a last-chance saloon of sorts to raise money on global capital markets before the Fed starts to cut off the supply of free cash.

Emerging markets: to buy or not to buy

September 12, 2013

To buy or not to buy — that’s the question facing emerging market investors.

US investors prop up emerging equity flows

September 6, 2013

U.S. mutual fund investors are ploughing on with bets on emerging market equities, according to the latest net flows numbers from our corporate cousins at fund research firm Lipper. Has no one told them there’s supposed to be a massive sell-off?

Tapping India’s diaspora to salvage rupee

August 21, 2013

What will save the Indian rupee? There’s an election next year so forget about the stuff that’s really needed — structural reforms to labour and tax laws, easing business regulations and scrapping inefficient subsidies. The quickest and most effective short-term option may be a dollar bond issued to the Indian diaspora overseas which could boost central bank coffers about $20 billion.

Pakistan, Nigeria, Bulgaria… the cash keeps coming

August 19, 2013

The frontier markets juggernaut continues. Here’s a great graphic from Bank of America/Merrill Lynch showing the diverging fund flow dynamic into frontier and emerging equity markets.

Emerging markets funds shun Brazil, South Africa

July 29, 2013

Global emerging markets equity funds have cut average weightings to Brazil and South Africa for the fourth straight quarter, according to the latest allocations data from fund research firm Lipper.

BRIC shares? At the right price

July 19, 2013

Is the price right? Many reckon that the sell off in emerging markets and growing disenchantment with the developing world’s growth story is lending fresh validity to the value-based investing model.

South Africa may need pre-emptive rate strike

July 17, 2013

Should South Africa’s central bank — the SARB – strike first with an interest rate hike before being forced into it?  Gill Marcus and her team started their two-day policy meeting today and no doubt have been keeping an eye on happenings in Turkey, a place where a pre-emptive rate hike (instead of blowing billions of dollars in reserves) might have saved the day.

Chinese inflation – unreported retail

July 9, 2013

China’s inflation print for June at 2.7 percent, a four-month high, was higher than forecast, but part of the picture could be obfuscated by a lack of accounting for the ever-growing online retail sector.

“Contrarian” Deutsche (a bit) less bearish on emerging stocks

July 2, 2013

For an investor in emerging equities the best strategy in recent years has been to take a contrarian stance, says John-Paul Smith at Deutsche Bank.