Investment strategy Correspondent
Sujata's Feed
Sep 18, 2015

Hedge fund Aurelius holds Ukraine debt, asking better terms -source

By Sujata Rao and Chris Spink

LONDON, Sept 18 (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.

Sep 18, 2015

Emerging markets post subdued post-Fed gains

LONDON, Sept 18 (Reuters) – Emerging market equities rose to
one-month highs on Friday, leading a broad rally caused by the
Federal Reserve’s decision to keep U.S. interest rates

MSCI’s broadest emerging market index was 0.6
percent higher and was on track for the biggest weekly rise
since early April, with 3.7 percent gains. Emerging Asian shares
rallied one percent.

Sep 16, 2015

Kazakh tenge in sharp fall, other emerging markets firm pre-Fed

LONDON, Sept 16 (Reuters) – The Kazakh tenge, which was
devalued last month, fell as much as 7 percent on Wednesday as
authorities made good on their promise not to intervene, but
expectations that the U.S. Fed will keep rates on hold supported
most other emerging assets.

Emerging stocks touched two-week highs, while Chinese
mainland shares enjoyed a 5 percent last minute jump which some
attribute to government intervention before the closing bell

Sep 15, 2015

Indebted emerging world about to count cost of Fed rate rise

LONDON (Reuters) – Sometime this year, possibly even this week, the U.S. Federal Reserve will add billions of dollars to the annual cost of borrowing. Many firms, especially in emerging markets, seem ill-prepared for the inevitable.

Whenever the Fed finally starts tightening monetary policy, the impact will probably be felt for years by companies and households that loaded up on cheap debt during almost seven years of near-zero official U.S. interest rates.

Sep 10, 2015

After Ukraine setback, Templeton bond star Hasenstab buys more emerging markets

LONDON/BOSTON Sept 10 (Reuters) – A setback in Ukraine for
Franklin Templeton’s star fund manager Michael Hasenstab hasn’t
dimmed his appetite for bold bets in markets shunned by others
as he boosts exposure to some of this year’s worst-performing
emerging markets.

For a decade, 41-year old Hasenstab has topped fund
performance tables, outflanking rivals with outsize investments
in unloved markets such as Hungary and Ireland, buying bonds
cheap and cashing in as their governments dodged default.

Sep 10, 2015

Weak growth, credit rating cuts dog emerging assets; lira at record low

LONDON, Sept 10 (Reuters) – Turkey’s lira hit a new low on
Thursday, hurt by fresh violence in the east of the country as
well as a weak emerging market outlook underscored by lacklustre
Chinese data and Brazil’s ratings cut to junk.

Emerging stocks fell almost 1 percent, snapping a two-day
run of gains after data showed Chinese producer
inflation declining for the 42nd month in a row, signalling
deflation risks in the world’s No. 2 economy. Chinese mainland
shares lost more than 1 percent .

Sep 3, 2015

As with Greece, Ukraine debt swap may not be the last word

LONDON, Sept 3 (Reuters) – Bondholders cheering Ukraine’s
debt swap face the risk that Kiev will return to the bargaining
table within a few years, following the path Greece trod after
its 2012 restructuring.

Ukraine’s sovereign bonds have rallied 40 percent to trade
up to 75 cents per dollar of face value following the Aug. 27
agreement which wrote off a fifth of the $18 billion principal
and lengthened maturities by four years.

Sep 2, 2015

Emerging stocks fall for third day on growth fears

LONDON, Sept 2 (Reuters) – Emerging equities fell for the
third day running on Wednesday, approaching six-year lows on
deepening concerns about global growth, as oil price weakness
fuelled another drop in the Russian rouble.

Data this week showed manufacturing and exports contracted
in several emerging economies. Chinese output contracted in
August at the sharpest pace in three years while European and
U.S. growth also eased. That has kept emerging assets close to
multi-year or record lows.

Sep 1, 2015

Weak growth keeps emerging assets on the ropes

LONDON, Sept 1 (Reuters) – A raft of weak economic data kept
emerging assets on the ropes on Tuesday, with stocks extending
August’s heavy losses and central banks scrambling to control
currencies’ relentless slide against the dollar.

Data showed Chinese and Taiwanese manufacturing contracted
at the fastest pace in three years while South Korean exports
fell the most in six years, reflecting weakness within emerging
economies as well as their overseas markets.

Aug 28, 2015

European funds buy bonds, keep cash levels high given equity volatility – Reuters poll

LONDON (Reuters) – Spooked by China’s equity rout and the possibility of a deeper financial crisis, European investors have increased exposure to safe-haven bonds to the highest level in 2015 while keeping cash allocations near three-year highs.

A Reuters poll conducted between Aug. 10 and 27 found investors’ nerves jangled by China, where a currency devaluation and wild equity volatility have raised concern that the economy could slow more drastically than investors had foreseen – a fear reinforced by a steady stream of weak data.