Investment strategy Correspondent
Sujata's Feed
Dec 18, 2014

Analysis – Arguing over Russian reserves: $400 billion or half that?

LONDON (Reuters) – Defending the rouble has cost Russia around $80 billion (51 billion pounds) this year, and depending on who’s doing the calculations, its usable hard currency reserves are now either starting to run low, or at a healthy $400 billion-plus.

While Russia has only slowed the rouble’s slide, it looks all right by any yardstick of whether its reserves are adequate. According to official data on Thursday, its foreign currency and gold reserves were $414.6 billion in the latest week.

Dec 18, 2014

Arguing over Russian reserves: $400 billion or half that?

LONDON (Reuters) – Defending the rouble has cost Russia around $80 billion this year, and depending on who’s doing the calculations, its usable hard currency reserves are now either starting to run low, or at a healthy $400 billion-plus.

While Russia has only slowed the ruble’s slide, it looks all right by any yardstick of whether its reserves are adequate. According to official data on Thursday, its foreign currency and gold reserves were $414.6 billion in the latest week.

Dec 17, 2014

Rouble bounce fizzles again; pressure across emerging markets

LONDON, Dec 17 (Reuters) – The rouble’s opening bounce
fizzled on Wednesday as the currency shrugged off the latest
hard currency sales against a backdrop of general bearishness on
Russia and mounting pressure across emerging markets.

Central banks from Brazil to Indonesia have stepped in this
week to curb losses in their currencies which have sold off
versus the dollar on expectation the U.S. Federal Reserve will
hint at the timing and extent of future interest rate rises.

Dec 15, 2014

Russian corporate bonds sold off as rouble plunges

LONDON, Dec 15 (Reuters) – Dollar bonds of Russian companies
suffered a fresh selloff on Monday, as the rouble’s fall past
the 60-per-dollar level and the threat of more sanctions fanned
fears about future debt repayments.

Russian financial markets are reeling, with
dollar-denominated stocks chalking up a 10 percent loss
on Monday – their steepest one day fall since March – while
yields on local and hard currency sovereign debt are at levels
unseen since the 2008-2009 global crisis.

Dec 15, 2014

Emerging markets hammered by oil and dollar moves

LONDON, Dec 15 (Reuters) – The Indonesian rupiah and Russian
rouble led emerging currency losses against the resurgent dollar
on Monday, while Russian sovereign bond spreads surged above 600
basis points for the first time since 2009.

Hurt by oil’s fall to 5-1/2 year lows and a surging dollar,
emerging equities fell to nine-month lows, while
emerging dollar bond yield spreads over Treasuries rose to 440
basis points, a three-year high, as investors demanded
higher returns for the risk of holding the debt.

Dec 10, 2014

Ukraine bonds see selloff, Greek stocks extend slide

LONDON, Dec 10 (Reuters) – Ukraine’s dollar bonds sold off
heavily on Wednesday on fears that an international bailout
programme would not prevent debt restructuring, while Greek
stocks extended the previous day’s double-digit fall.

Ukrainian bonds fell as much as five cents to trade at 66-68
cents in the dollar, while yield spreads widened 50 basis points
to 1669 bps over U.S. Treasuries, a new five-year high
.

Dec 10, 2014

Pressure on Russia to raise rates, squeeze liquidity to help rouble

LONDON, Dec 9 (Reuters) – Pressure is building on Russia’s
central bank to support the rouble via a big rise in interest
rates at this week’s policy meeting, as money markets price in
sharply higher funding costs in the coming months.

The bank, which so far has been powerless to stem the
rouble’s slide, meets on Thursday and analysts predict a 100
basis-point rise in the key lending rate, taking it to 10.5
percent.

Dec 9, 2014

Russia expected to raise rates, squeeze liquidity to help rouble

LONDON, Dec 9 (Reuters) – Pressure is building on Russia’s
central bank to support the rouble via a big rise in interest
rates at this week’s policy meeting, as money markets price in
sharply higher funding costs in the coming months.

The bank, which so far has been powerless to stem the
rouble’s slide, meets on Thursday and analysts predict a 100
basis-point rise in the key lending rate, taking it to 10.5
percent.

Dec 5, 2014

Sanctions, oil, recession – Russian company bonds feel the pain

LONDON, Dec 5 (Reuters) – Rouble depreciation, Western
sanctions and collapsing commodity prices have sent Russian
companies’ hard currency bonds tumbling to multi-year lows and
there is very likely more stress ahead.

With around $650 billion in external debt, more than $100
billion due for repayments in the coming year and global capital
markets effectively shut to Russia, companies, both private and
state-run, are suffering.

Dec 3, 2014

Ukraine currency, sovereign woes to push more and more firms into default

LONDON, Dec 3 (Reuters) – With an economy in meltdown, a
currency that has tanked 45 percent and a possible sovereign
default ahead, more and more of Ukraine’s companies are finding
themselves unable to repay overseas debt.

While a relatively modest $12.4 billion in private sector
debt falls due in 2015, according to International Monetary Fund
estimates, it still exceeds Ukraine’s total hard currency
reserves and is double what the government owes foreign
creditors next year.