Investment strategy Correspondent
Sujata's Feed
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.

Jun 22, 2015

East Europe benefits from Greek deal hopes

LONDON, June 22 (Reuters) – Signs of a last-minute deal to
prevent a Greek default propelled emerging stocks to their
biggest one-day rise in more than two months and the relief also
lifted emerging currencies, especially in eastern Europe.

MSCI’s emerging equity index rose 1 percent,
pulling off 2-1/2 month lows hit last week when Athens appeared
headed towards default and a euro exit just as the U.S. Federal
Reserve is preparing for its first rate rise in almost a decade.

Jun 17, 2015

Dividend hunters eye emerging markets, helped by local pension funds

LONDON, June 17 (Reuters) – Once mainly growth-based
investments, emerging markets are seeing a dividend payout
culture take root among companies, especially in countries where
big local pension funds are pushing for change.

Emerging companies paid a record $119 billion in dividends
last year, double 2009 levels and more than three times what
they paid in 2005. Payout ratios — the percentage of earnings
given in dividends — exceeded developed countries by 4 percent,
according to Aye Soe, research director at S&P Dow Jones
Indices. (link.reuters.com/dac94w)

Jun 17, 2015

Fed, Greece squeeze EM assets; debt spreads rise to 400bps vs Treasuries

LONDON, June 17 (Reuters) – Emerging dollar bonds’ premium
over Treasuries briefly rose to 400 basis points on Wednesday
for the first time since April and currencies fell as
nervousness grew over Greece and a Fed meeting later in the day.

It looks increasingly unlikely that a Thursday meeting of
European Union finance ministers will make progress on
preventing a Greek default while the U.S. Federal Reserve is
expected to signal a September rate increase later in the day.

Jun 16, 2015

Eastern Europe feels heat from Greek debt spillover

LONDON, June 16 (Reuters) – Polish 10-year bond yields hit
10-month highs on Monday, bearing the brunt of eastern European
jitters over Greece’s impending default while broader emerging
equities were poised to fall back into the red for 2015.

The collapse of Greece’s cash-for-reforms talks raises the
prospect of a debt default in two weeks, when Athens faces a 1.6
billion euro repayment to the International Monetary Fund,
prompting investors to flee equities and higher-risk bonds in
favour of safer German and U.S. debt.