LONDON, March 7 (Reuters) – Emerging economies may be on the
cusp of a great unwinding of borrow-low invest-high carry
trades, through which an estimated $2 trillion has flooded
mainly into their debt markets in the past five years.
The latest cycle of carry trades is the third in little over
two decades and its estimated size is roughly double that of its
predecessor. A reversal poses a specific risk to debt markets,
especially in China, where investors who facilitated a corporate
lending binge face both currency and credit losses.
LONDON, March 5 (Reuters) – Russian shares fell again and
the rouble slipped towards record lows on Wednesday as investors
remained wary about a standoff between Russia and Ukraine in
Chinese shares fell as fears grew over a possible default by
a listed company there and on Beijing’s plan to introduce
deposit insurance – a move towards freeing up deposit rates -
but the broader benchmark emerging equity index held up.
RTRS-INTERFAX QUOTES DEFENCE SOURCE AS SAYING RUSSIAN FLEET HAS GIVEN UKRAINIAN FORCES IN CRIMEA UNTIL 0300 GMT TO SURRENDER OR FACE STORM
VTB down 18 pct, Sverbank down 17 pct, Gazprom down 14 pct in large Russian equity sell-offs.
Russia’s EMBIG spreads widening by 20 bps over Treasuries to 264 bps now
Unsurprisingly… Ukraine’s benchmark stocks down nearly 10 pct today
UBS Wealth Management puts 50 percent chance for Ukraine debt to either get restructured (40%) or default (10%)
LONDON, Feb 28 (Reuters) – Investors are marking Russia and
Nigeria, where current account surpluses and reserves are slowly
eroding, as the next likely victim of the rolling emerging
market crisis, as well as a “double deficit club” of economies.
Rather than looking simply at a country’s external reliance
on capital – which prompted investors to shun the “Fragile Five”
including India and Indonesia last year – markets are likely to
target commodity exporters next.
LONDON (Reuters) – The world’s top investors cut exposure to emerging European equities to a five-month low in February as they fretted over a spillover from tensions in Ukraine and Russia, Reuters polls showed on Friday.
Concerns over China’s economic slowdown also prompted fund managers to trim their Asian equity holdings to a four-year low and instead boost euro zone equity weightings to the highest since June 2011.