Investment strategy Correspondent
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Jan 29, 2015

Emerging markets weaker post-Fed; Belarus bonds tumble on restructuring talk

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.

Jan 28, 2015

Emerging markets weaker pre-Fed, naira plumbs new lows

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.

Jan 26, 2015

Mega-funds start to beat retreat from emerging markets

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.

Jan 23, 2015

After Hungary’s Swiss franc mortgage maneuver, a nod to Orbanomics

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.

Jan 22, 2015

Ukraine bond selloff intensifies; funds brace for restructuring

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

Jan 16, 2015

Polish assets extend loss on franc fears; EM stocks to snap 4-wk winning run

LONDON, Jan 16 (Reuters) – The Polish zloty and stocks
extended losses on Friday after the Swiss franc’s surge against
central European currencies fanned financial stability fears,
though Hungarian assets stabilised.

More broadly, emerging equities were set to snap a four-week
winning streak, with the currency market turbulence
preventing the sector from benefiting from the fall in U.S.
Treasury yields.

Jan 15, 2015

Copper collapse a fresh blow for many emerging economies

LONDON, Jan 15 (Reuters) – The collapse in prices for copper
will deal a blow to emerging economies from Chile to Congo that
are reliant on exports of the metal, with currencies and
economic growth likely to bear the brunt.

Copper has tumbled to six-year lows this week,
sending shockwaves through global markets that are just coming
to terms with oil’s 60 percent price slide since June. Worst hit
are likely to be Chile and Peru, the world’s top and third
largest copper producers respectively.

Jan 15, 2015

Capital flows to emerging markets to fall in 2015 for second straight year

LONDON, Jan 15 (Reuters) – Capital flows to emerging markets
will decline in 2015 for the second year in a row due to the
prospect of higher U.S. interest rates, a global finance
industry body said on Thursday, predicting inflows of $1.06

The Washington DC-based Institute of International Finance
(IIF) said in a report that total private sector investment
flows to emerging markets fell last year to $1.1 trillion, $250
billion less than the 2013 record high of $1.35 trillion.

Jan 14, 2015

Threat of debt writedowns hovers over Ukraine

LONDON/KIEV, Jan 14 (Reuters) – The collapse in Ukraine’s
hard currency reserves to just enough to cover five weeks of
imports is threatening big government debt writedowns, rather
than mere maturity extensions, being needed to put the country
on its feet.

That is, unless international lenders beef up existing loan
offers to plug an estimated $15 billion funding gap.

Jan 14, 2015

Copper share rout leads emerging markets lower

LONDON, Jan 14 (Reuters) – Big copper firms from India’s
Hindalco to Poland’s KGHM led emerging equity falls on Wednesday
as prices for the metal plunged to 5-1/2 year lows, fuelling
concerns about growth and deflation in many countries.

Copper’s rout combined with oil’s 60 percent slide in the
past six months is weighing on commodity producers from Russia
to Chile, while growth fears are pressuring equity markets
worldwide. MSCI’s emerging equity index fell half a percent
while stocks in commodity-heavy South Africa shed 1