Investment strategy Correspondent
Sujata's Feed
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.

Jun 12, 2015

With moratorium, Ukraine risks demand for immediate payment on all bonds

LONDON, June 12 (Reuters) – Ukraine’s creditors could invoke
clauses allowing them to demand payment of all its bonds at a
stroke if Kiev carries out its threat to slap a moratorium on
debt payments, a top source familiar with the situation told
Reuters.

Bondholders, led by Franklin Templeton, have declared
themselves “deeply concerned” with Finance Minister Natalia
Yaresko’s threat to call a moratorium on foreign debt payments
if restructuring talks drag on into the summer.

Jun 11, 2015

Ukraine seeks 40 pct bond writedown, moratorium threat enrages creditors

LONDON, June 11 (Reuters) – Ukraine can’t meet IMF terms for
a bailout unless creditors write down 40 percent of the
sovereign bonds they hold, a source said on Thursday in comments
that suggest talks are deadlocked.

Finance Minister Natalia Yaresko suggested the 40 percent
writedown, or haircut, on the bonds earmarked for restructuring
during a visit to Washington on Wednesday.

Jun 11, 2015

Post-election nerves pressure Turkey, emerging assets broadly weaker

LONDON, June 11 (Reuters) – Turkey’s currency and stock
markets slipped half a percent on Thursday, weighed down by
politics and a stubbornly high national funding deficit, and a
firmer dollar weighed on other emerging markets.

Turkish political parties are jostling to form a government
after the ruling AK Party failed to get a parliament majority,
raising the spectre of early elections or a fractious coalition
that fails to implement economic reform.

Jun 10, 2015

Easing dollar brings EM relief, China stocks seesaw on MSCI’s No verdict

LONDON, June 10 (Reuters) – Chinese stocks seesawed on
Wednesday, buoyed by fresh stimulus hopes but knocked by MSCI’s
decision not to include them in its indexes, while other
emerging markets received respite from a slight pullback in the
dollar.

Chinese stocks ended 0.2 percent lower after wild swings
following an announcement by index provider MSCI that it would
not yet include mainland-listed shares in its equity benchmarks
. But the market rose more than 1 percent at
one point as cuts to central bank growth forecasts fuelled hopes
of more stimulus .

Jun 5, 2015

Ukraine’s creditors say detailed debt talks still elusive

LONDON (Reuters) – A group of Ukraine’s creditors expressed disappointment on Friday that no basis had yet been found for detailed negotiations with Kiev on how to restructure its debt.

Kiev and a creditors’ committee led by Franklin Templeton had earlier held a teleconference aimed at reaching a deal to enable Ukraine to meet targets attached to a $40 billion bailout package led by the International Monetary Fund.

Jun 4, 2015

Wild Bund yield ride takes emerging assets to multi-month lows

LONDON, June 4 (Reuters) – Rising German and U.S. bond
yields knocked emerging assets hard on Thursday, with stocks
down almost 1 percent while currencies, from the Indonesian
rupiah to the Russian rouble, hit multi-month or multi-year
lows.

A six-week-long bond market selloff is rumbling on, with
German and U.S. 10-year yields at their highest since October.
The former is almost a percentage point higher than in mid-April
. Japanese yields surged to six-month highs.