Investment strategy Correspondent
Sujata's Feed
Oct 5, 2015

No end in sight, as money flees ‘cheap’ emerging markets

LONDON, Oct 5 (Reuters) – Money is fleeing emerging markets
en masse in 2015 for the first time in 27 years and few global
investors are tempted to return to equities, currencies or bonds
there as many of the populous economies defining the asset class
slow inexorably.

Over the three decades or so of the modern ’emerging
markets’ securities industry, periodic shocks and sharp
drawdowns have typically been followed by big returns for those
bold enough to snap up cheap assets during the darkest moments.

Oct 5, 2015

Emerging stocks, currencies rally as markets trim dollar positions

LONDON, Oct 5 (Reuters) – Emerging market stocks rose more
than 1 percent on Monday to two-week highs as markets priced in
a delay to U.S. interest rate rises, though growing political
tension prevented Turkish assets from taking part in the rally.

Data on Friday showed weak job creation in the United
States, setting off a rally in emerging market assets as the
conviction grew the U.S. Federal Reserve would not raise rates
until March 2016.

Oct 2, 2015

Q3 investor flight wiped record $10 trillion off global stocks -BAML

LONDON, Oct 2 (Reuters) – Investors pulled a combined $75
billion from U.S. and emerging market equity funds in the third
quarter, wiping a record $10 trillion off the value of global
equities in the period, according to EPFR Global and Bank of
America Merrill Lynch.

In data released late on Thursday, Boston-based fund tracker
EPFR Global said European and Japanese funds were the only
equity classes to receive net inflows between July and
September, most likely motivated by the possibility of more
central bank money-printing.

Oct 2, 2015

Investors shun bonds, U.S. and emerging equities in third quarter: EPFR

LONDON (Reuters) – Investors, spooked by Chinese economic turmoil and signs of weaker world growth, pulled a combined $75 billion from U.S. and emerging market equity funds in the third quarter while parking $100 billion in money market vehicles, data showed.

In data released late on Thursday, Boston-based fund tracker EPFR Global said European and Japanese funds were the only equity classes to receive net inflows between July and September, most likely motivated by the possibility of more central bank money-printing.

Oct 2, 2015

Investors shun bonds, U.S. and emerging equities in Q3 -EPFR

LONDON, Oct 2 (Reuters) – Investors, spooked by Chinese
economic turmoil and signs of weaker world growth, pulled a
combined $75 billion from U.S. and emerging market equity funds
in the third quarter while parking $100 billion in money market
vehicles, data showed.

In data released late on Thursday, Boston-based fund tracker
EPFR Global said European and Japanese funds were the only
equity classes to receive net inflows between July and
September, most likely motivated by the possibility of more
central bank money-printing.

Sep 30, 2015

EM stocks plunge 20 pct in Q3; China, Brazil the hot spots

LONDON, Sept 30 (Reuters) – Emerging markets suffered steep
losses over the third quarter of 2015, with equities losing
almost a fifth of their value in the past three months and many
currencies dropping to record lows against the dollar.

In the year to date, every major emerging market asset class
is in the red, with losses spiralling in the July-September
period, this graphic shows: link.reuters.com/xyg75w

Sep 30, 2015

UK funds cut equity allocation to three-year low – Reuters poll

LONDON (Reuters) – British investors cut equity allocations in September to their lowest in three years, buying more bonds and property as their fears of deteriorating world growth appeared to be confirmed, a Reuters poll found.

The monthly survey of eight investment managers based in Britain showed average exposure to shares fell more than six percentage points from August to 47.6 percent, just under June levels, which were a three-year low.

Sep 29, 2015

Commodity slump sends exporters’ Eurobonds to multi-year lows

LONDON, Sept 29 (Reuters) – Prices for Eurobonds from many
commodity-exporting emerging markets have fallen sharply this
week on fears that the latest metals price reversal will hit the
ability to repay debt, especially in some African countries.

A major casualty of the metals price plunge is Glencore
, whose bonds and shares have tanked to a record low.
Almost a third of the mining and trading firm’s value was wiped
out on Monday alone.

Sep 28, 2015

Emerging markets rout stirs unease about capital curbs

LONDON, Sept 28 (Reuters) – Moves by Nigeria and China to
clamp down on currency and equity markets have raised fears
other countries may also seek to curb capital movement as a way
to stem the exodus of money from emerging markets.

Some governments are already restricting citizens’ ability
to move cash freely or tightening existing measures and some
foreign investors worry they may be next in line.

Sep 18, 2015

Exclusive: Hedge fund Aurelius holds Ukraine debt, asking better terms – source

By Sujata Rao and Chris Spink

LONDON (Reuters/IFR) – A hedge fund that has for years used courts to secure better debt repayment terms from Argentina has accumulated Ukraine sovereign bonds and formed a group seeking improvements to a recent debt workout, a source with knowledge of the matter said.

Reviled by Argentina and debt forgiveness groups as “vultures”, Aurelius Capital Management and another hedge fund, Elliott, have long pressed Buenos Aires for full repayment on its sovereign debt, including the seizing of national assets, and last year triggered a fresh default.