Investment strategy Correspondent
Sujata's Feed
Jul 2, 2015

Investors see growing risks in Nigeria’s devaluation delay

LONDON, July 2 (Reuters) – International investors, dismayed
by Nigeria’s decision to delay a naira devaluation they see as
long overdue, will hold back from its stock and bond markets,
raising risks of a deeper crisis in Africa’s biggest economy.

The afterglow from March, when an incumbent president handed
over power after what was seen as Nigeria’s freest ever
election, is dissipating as new leader Muhammadu Buhari shows
little sign of following up on promises of economic reform.

Jun 30, 2015

Jittery European investors boost cash to three-year high: Reuters poll

LONDON (Reuters) – European investors, fearful of a looming Greek debt default, sold stocks and bonds in June and fled to the safety of cash, raising its share in portfolios to the highest in nearly three years.

A monthly survey of 20 European investment managers found that equity allocations in global portfolios had fallen to six-month lows. Bond holdings were their lowest in at least four years, as expectations grew U.S. interest rates would rise and Greece would quit the euro.

Jun 30, 2015

Funds boost cash to highest in over five years as Greece, Fed threaten turbulence

LONDON (Reuters) – Global investors increased cash holdings in their portfolios to the highest in more than five years in June, prompted by fears of market volatility with a Greek default and the first U.S. rate rise in almost a decade both looming.

The monthly Reuters survey of 47 fund managers and chief investment officers in the United States, Europe, Japan and Britain was conducted as it became evident a U.S. economic recovery was taking hold, allowing the Federal Reserve’s June 16-17 meeting to signal a rate rise in 2015.

Jun 30, 2015

Jittery European investors boost cash to three-year high – poll

LONDON (Reuters) – European investors, fearful of a looming Greek debt default, sold stocks and bonds in June and fled to the safety of cash, raising its share in portfolios to the highest in nearly three years.

A monthly survey of 20 European investment managers found that equity allocations in global portfolios had fallen to six-month lows. Bond holdings were their lowest in at least four years, as expectations grew U.S. interest rates would rise and Greece would quit the euro.

Jun 29, 2015

Chinese stocks, Russian rouble lead H1 emerging asset returns

LONDON, June 29 (Reuters) – Shanghai shares have provided
top-notch returns of 25 percent-plus so far in 2015, despite a
12 percent slump in June, vying with Russian assets and dwarfing
the performance of most other emerging markets.

Broader emerging equities were barely in the black on
Monday, just before the end of the first half-year, with a
likely default by Greece adding to the pressure. Emerging hard
currency sovereign and company bonds however have yielded
positive returns, the following graphic shows:

Jun 29, 2015

Balkan Eurobonds decline on Greek fallout fears, debt insurance costs up

LONDON, June 29 (Reuters) – Hard currency bonds from
Bulgaria and Romania fell by 1-2 cents on Monday and debt
insurance costs inched higher as a default by Greece, with close
trade and banking links to the Balkans, appeared inevitable.

Greece has less than 48 hours to pay back 1.6 billion euros
($1.77 billion) of International Monetary Fund loans, and a
default would set in train events that could lead to the
country’s exit from the euro currency bloc.

Jun 28, 2015

Credit, real estate booms raising emerging market risks-BIS

LONDON, June 28 (Reuters) – A decade of robust growth has
broadly strengthened emerging market economies but the
associated asset price booms and credit surges have increased
their vulnerability to crises, a BIS report said on Sunday.

In its quarterly review, the Bank for International
Settlements said that since 2002, emerging economies had enjoyed
one of the longest high-growth spells ever, expanding at an
average of over 6 percent a year.

Jun 26, 2015

Emerging H1 bond sales stutter; more than a fifth below year-ago

LONDON, June 26 (Reuters) – Bond sales from emerging markets
in the first half of 2015 are running more than a fifth below
year-ago levels due to the continued slump in issuance from
Russia, Brazil and oil producers across the developing world.

Governments and companies from the developing world had sold
hard currency bonds worth $195 billion as of June 19, Thomson
Reuters data shows, well below the $292 billion raised in the
first six months of 2014.

Jun 25, 2015

Emerging shares snap 3-day winning streak as China, Greece weigh

LONDON, June 25 (Reuters) – Emerging stocks snapped a
three-day losing streak on Thursday as Greece’s debt
negotiations dragged on and Chinese stocks suffered heavy losses
despite an easing in bank lending rules.

Receding hopes of a last-minute bailout deal to help Greece
avert default next week have fuelled losses on global equity
markets, with MSCI’s emerging index down half a percent
following 3.5 percent gains in the past six days.

Jun 24, 2015

With IMF backing, Ukraine heading for September debt moratorium

LONDON (Reuters) – Ukraine is likely to pay all bond coupons falling due over the summer but a $500 million maturity in September could mark a halt to debt repayments if a restructuring deal has not been reached by then.

War-ravaged and on International Monetary Fund life support, Ukraine has threatened to suspend payments if bondholders fail to accept demands for a 40 percent writedown, or “haircut”, in the face value of its sovereign bonds.