Investment strategy Correspondent
Sujata's Feed
Mar 3, 2015

Emerging-market bond default rates may be set to lift off

LONDON, March 3 (Reuters) – A decade-long period of
rock-bottom default rates on emerging- market debt looks to be
coming to an end.

All the factors that fed a boom in overseas borrowing –
fast economic growth, a weak dollar, booming commodity prices,
and low U.S. interest rates — appear to be changing. And if the
past is any indication, the $3 trillion emerging-market debt
sector could be headed for trouble.

Feb 24, 2015

Shekel, lira lead emerging currency weakness on interest rates, Fed

LONDON, Feb 24 (Reuters) – Monetary easing expectations
weighed on the Israeli shekel and Turkish lira on Tuesday amid
broader weakness among emerging market currencies, though the
rouble stabilised after recent heavy falls.

Russian dollar bonds also firmed modestly, a day after
losses triggered by Moody’s, the second agency to cut Russia to
junk status. Markets shrugged off an announcement that Barclays
would eject 10 dollar-denominated and one euro-denominated
Russian bond from its Global Aggregate Indices.

Feb 23, 2015

Kazakh resistance to ex-Soviet devaluation wave damaging economy

ALMATY/LONDON, Feb 23 (Reuters) – Facing early elections,
Kazakhstan has been steadfast in refusing to devalue the tenge
but the dangers of an over-valued currency are already evident
and may ultimately force official action.

Kazakhstan’s biggest trade partners, notably Russia, have
seen their currencies fall sharply against the dollar in the
past year. On the weekend, fellow ex-Soviet energy exporter
Azerbaijan became the latest to devalue.

Feb 23, 2015

Ukraine bonds fall to 40 cents in dollar as sell-off grips

LONDON, Feb 23 (Reuters) – Russian and Ukrainian sovereign
bonds sold off heavily on Monday, with the latter now trading
around 40 cents in the dollar as continued fighting in eastern
Ukraine raised fears for both credits.

The violence, and sanctions imposed for Russia’s role in it,
have exacerbated economic problems caused by falling oil prices,
with Moody’s cutting Russia’s rating to junk late on Friday.

Feb 20, 2015

Greek deal hopes keep European stocks at seven-year high

LONDON, Feb 20 (Reuters) – European share markets hovered
near seven-year highs on Friday as investors grew more confident
that euro zone finance ministers would reach a deal that would
allow Greece to receive funding and stay in the euro zone.

U.S. stock futures indicated a slightly firmer opening on
Wall Street, with the tech-heavy Nasdaq index closing in on the
all-time high touched 15 years ago
as investors also focused on signs of economic improvement
across the developed world.

Feb 20, 2015

Greek jitters push world stock markets off highs

LONDON (Reuters) – World stocks fell from five-month highs on Friday and the euro weakened before a meeting of euro zone finance ministers that could put Greece on its way to exiting the euro zone.

European equity markets were a touch higher, however, and U.S. stock futures indicated a firmer open on Wall Street, as investors focused on signs of economic improvement across the developed world.

Feb 20, 2015

Greek jitters push stock markets off highs

LONDON, Feb 20 (Reuters) – World stocks fell from five-month
highs on Friday and the euro weakened before a meeting of euro
zone finance ministers that could put Greece on its way to
exiting the euro zone.

European equity markets were a touch higher, however
, and U.S. stock futures indicated a firmer
open on Wall Street , as investors focused
on signs of economic improvement across the developed world
.

Feb 20, 2015

Greek bailout jitters push stock markets off highs

LONDON (Reuters) – World stocks eased off five-month highs on Friday and the euro fell before a European finance ministers’ meeting that could potentially cut Greece adrift and set it on the path to exiting the euro zone.

European equity markets opened a touch higher however, focusing on continued signs of economic improvement across the euro bloc, as data showed robust private sector growth in France and Germany.

Feb 16, 2015

Emerging fund managers stuck in buy-and-hold as trading shrivels

LONDON, Feb 16 (Reuters) – A collapse in day-to-day trading
in emerging bonds is forcing fund managers to increasingly rely
on buy-and-hold investment strategies, with more and more of
them unable to sell securities when they most need to do so.

There is a disconnect between booming new issue markets and
the moribund secondary trade picture. This may even worsen if
near-zero or negative Western bond yields bring more entrants
into emerging markets where, according to BNP Paribas, the
average stock of a dollar bond trades less than twice a year -
down from 4-5 times back in 2007.

Feb 11, 2015

Russian capital flight becoming an entrepreneur brain drain

LONDON, Feb 11 (Reuters) – With Russia battered by
international sanctions and weak oil prices, an accelerating
capital flight is turning into a brain drain of entrepreneurs
that threatens to hurt the economy’s long term health.

Immigration lawyers, estate agents and bankers in Europe are
reporting a jump in interest from middle class business owners
planning to move their ventures and families outside Russia.
London is becoming a favourite among would-be emigres seeking
financial and political stability.