Investment strategy Correspondent
Sujata's Feed
Mar 25, 2015

Ukraine bondholders face haircuts and extensions

LONDON (Reuters) – Investors who bought Ukrainian bonds as a punt on a high-yield market backed by the West will probably have to write off a major part of the investment as their share of an IMF-led bailout for Kiev.

Some creditors might hope to follow a minority of Greek bondholders who eventually recovered their investment after the majority accepted a restructuring of the country’s debt in 2012.

Mar 24, 2015

Ukraine creditors must restructure, no benefit to hold out – Finance Minister

LONDON (Reuters) – Ukraine’s debt burden cannot be restructured by just extending the maturity of its bonds, and creditors are unlikely to benefit if they “hold out” to maximise payments, Finance Minister Natalia Yaresko said on Tuesday.

After a year of war and political upheaval that has seen its currency plummet and sent its economy into a tailspin, Ukraine agreed a $17.5 billion (12 billion pound), four-year bailout facility with the International Monetary Fund this month. The deal obliges Kiev to restructure at least $15.3 billion of outstanding debt.

Mar 23, 2015

Russia hasn’t responded yet to debt talks invite – Ukraine fin min

LONDON, March 23 (Reuters) – Ukraine has officially invited
Russia to participate in debt restructuring talks but has not
yet received a response, the country’s Finance Minister Natalia
Yaresko said on Monday.

Russia holds $3 billion worth of bonds that mature in
December and are part of the debt Ukraine needs to restructure
under an IMF aid programme agreed earlier this month.

Mar 17, 2015

China leads emerging equity gains; currencies rise as dollar eases

LONDON, March 17 (Reuters) – Emerging market stocks rose 0.7
percent on Tuesday, lifted by Chinese shares at seven-year highs
and weaker U.S. data that fuelled expectations the U.S. Federal
Reserve will remain cautious about raising interest rates.

Downbeat U.S. manufacturing and housing data have caused the
dollar index to ease off recent 11 1/2-year highs and Treasury
prices to rise before the start of the Fed’s two-day meeting

Mar 16, 2015

All Ukraine creditors, not just bondholders, must restructure – IIF

LONDON, March 16 (Reuters) – A $15.3 billion bill for
Ukraine’s private creditors as part of an IMF-led bailout is
unfair unless other sovereign or supra-national lenders have to
restructure debts too, the head of a global financial industry
body said on Monday.

The Institute of International Finance (IIF), which most
recently represented banks and asset managers during Greece’s
2012 debt swap, is not formally involved in Ukraine’s upcoming
restructuring talks. But says it has had informal discussions
with investors involved in the looming Ukraine workout.

Mar 16, 2015

Oil, dividends, cheap assets – return to Russia rewards investors

LONDON (Reuters) – Fund managers who bet on beaten-down Russian stocks and bonds have been rewarded with some of the best returns in emerging markets so far in 2015.

Foreign investors fled Russia last year, panicked by an oil price collapse, a simmering conflict on the Russia-Ukraine border and Western sanctions that effectively froze the country out of credit markets. The subsequent 50 percent plunge in the rouble’s exchange rate between May and December provided another catalyst for the exodus.

Mar 12, 2015

Emerging-market assets revive as dollar gives up gains

LONDON, March 12 (Reuters) – Emerging-market stocks
rebounded from two-month lows and currencies rose as the dollar
gave up some of its recent gains.

Ukraine’s credit default swaps fell 184 basis points after
the International Monetary Fund approved a $17.5 billion loan
package for the country, a decision that was widely expected.

Mar 11, 2015

IMF cash in bag, a debt moratorium may give Ukraine what it needs

LONDON (Reuters) – Ukraine, seeking to plug a $15 billion-plus funding gap via debt restructuring, may find that a multi-year payment moratorium does the trick, with investors possibly having to swallow a smaller eventual writedown than feared.

The country is expected to get the nod from the International Monetary Fund (IMF) later on Wednesday for a $17.5 billion loan package, and the fund assumes Kiev will get $15.4 billion from talks with creditors

Mar 11, 2015

Graphic – From fragile five to troubled trio

LONDON (Reuters) – South Africa’s rand, Turkey’s lira and Brazil’s real suffered some of the steepest losses in the recent emerging-market rout. Their peers in the so-called fragile five, India and Indonesia, escaped with less damage.

The five countries got their name in 2013, as hints emerged that the U.S. Federal Reserve would end its easy-money policy. Bound together by sizeable current account deficits and reliance on foreign capital, they looked vulnerable to shocks such as a strong dollar and rising U.S. interest rates.

Mar 11, 2015

From fragile five to troubled trio

LONDON, March 11 (Reuters) – South Africa’s rand, Turkey’s
lira and Brazil’s real suffered some of the steepest losses in
the recent emerging-market rout. Their peers in the so-called
fragile five, India and Indonesia, escaped with less damage.

The five countries got their name in 2013, as hints emerged
that the U.S. Federal Reserve would end its easy-money policy.
Bound together by sizeable current account deficits and reliance
on foreign capital, they looked vulnerable to shocks such as a
strong dollar and rising U.S. interest rates.