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.
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.
LONDON, Feb 11 (Reuters) – The naira fell 2 percent on
Wednesday and currency forwards priced in more devaluation to
come as Nigeria’s political and security crisis escalates, while
other emerging markets also retreated in face of a stronger
The naira is down more than 10 percent against the dollar
this year despite repeated central bank interventions,
weighed on by the postponement of Feb. 14 elections, weak oil
prices and an Islamist insurgency. Standard and Poor’s on
Tuesday placed Nigeria on creditwatch negative.
LONDON (Reuters) – Falling oil prices and rate cuts in Europe are giving emerging market central banks the green light to ease their own monetary policies but investors are fearful that political pressure may be prompting some shifts in stance.
Already fragile trust in policymaking in some countries is being tested by central bank actions and the demands of politicians such as Turkish President Tayyip Erdogan for deeper and faster rate cuts.
LONDON, Jan 29 (Reuters) – After a golden decade of
improvement, credit ratings for a swathe of developing economies
risk falling back to “junk”, with huge potential costs for up to
a tenth of outstanding emerging market bonds.
Many mainstream investment and pension funds have rules
preventing them from holding debt unless it is classified as
investment grade by at least two of the big ratings agencies,
and a number of countries are at risk due to problems ranging
from tumbling commodity export prices to political instability.
LONDON, Jan 29 (Reuters) – Belarus sovereign bonds fell up
to 27 cents in the dollar on Thursday on fears of debt
restructuring, while broader emerging markets also weakened
following a U.S. Fed statement that boosted the dollar.
Belarus yield spreads over Treasuries widened 900 basis
points to 1463 bps and its 2015 and 2018 bonds were sold
off after President Alexander Lukashenko said the country may
have to consider restructuring.
LONDON, Jan 28 (Reuters) – The Nigerian naira plumbed new
record lows on Wednesday on weaker oil prices and fears of
election-linked turmoil, while most other emerging currencies
also retreated on expectations of monetary easing.
Broader emerging markets were range-bound with a weaker bias
before a meeting of the U.S. Federal Reserve which many expect
to signal a delay in monetary tightening amid signs that a
stronger dollar is hurting U.S. corporate profits.
LONDON, Jan 26 (Reuters) – Big pension, insurance and
sovereign funds that kept faith with emerging markets during the
massive selloffs of 2013 and 2014 may be starting to waver,
potentially depriving the sector of a key source of support.
While emerging markets are a tiny part of the assets of
these institutional investors, anecdotal evidence from flow
patterns and global asset managers suggests allocations have
risen in recent years.
LONDON/BUDAPEST (Reuters) – Hungarian Prime Minister Viktor Orban has long irritated European Union partners with economic policies that have burned foreign banks operating in Hungary. They may find his triumph in this month’s Swiss franc episode a bitter one.
Unorthodox measures – dubbed Orbanomics – have included a 2011 repayment scheme to relieve Hungarian families of costly Swiss franc-denominated mortgages at the expense of the banks, most of which were foreign owned.
LONDON, Jan 22 (Reuters) – Ukraine’s sovereign dollar bonds
slumped on Thursday after the government said it would seek
talks with bondholders to “improve debt sustainability”,
interpreted by many as a call to restructure the debt.
The comments by Finance Minister Natalia Yaresko are being
seen as a call for creditors to write down some of Ukraine’s
debt as the country looks set to get a bigger and longer-term
financing facility from the International Monetary Fund