Investment strategy Correspondent
Sujata's Feed
Jun 12, 2015

With moratorium, Ukraine risks demand for immediate payment on all bonds

LONDON, June 12 (Reuters) – Ukraine’s creditors could invoke
clauses allowing them to demand payment of all its bonds at a
stroke if Kiev carries out its threat to slap a moratorium on
debt payments, a top source familiar with the situation told
Reuters.

Bondholders, led by Franklin Templeton, have declared
themselves “deeply concerned” with Finance Minister Natalia
Yaresko’s threat to call a moratorium on foreign debt payments
if restructuring talks drag on into the summer.

Jun 11, 2015

Ukraine seeks 40 pct bond writedown, moratorium threat enrages creditors

LONDON, June 11 (Reuters) – Ukraine can’t meet IMF terms for
a bailout unless creditors write down 40 percent of the
sovereign bonds they hold, a source said on Thursday in comments
that suggest talks are deadlocked.

Finance Minister Natalia Yaresko suggested the 40 percent
writedown, or haircut, on the bonds earmarked for restructuring
during a visit to Washington on Wednesday.

Jun 11, 2015

Post-election nerves pressure Turkey, emerging assets broadly weaker

LONDON, June 11 (Reuters) – Turkey’s currency and stock
markets slipped half a percent on Thursday, weighed down by
politics and a stubbornly high national funding deficit, and a
firmer dollar weighed on other emerging markets.

Turkish political parties are jostling to form a government
after the ruling AK Party failed to get a parliament majority,
raising the spectre of early elections or a fractious coalition
that fails to implement economic reform.

Jun 10, 2015

Easing dollar brings EM relief, China stocks seesaw on MSCI’s No verdict

LONDON, June 10 (Reuters) – Chinese stocks seesawed on
Wednesday, buoyed by fresh stimulus hopes but knocked by MSCI’s
decision not to include them in its indexes, while other
emerging markets received respite from a slight pullback in the
dollar.

Chinese stocks ended 0.2 percent lower after wild swings
following an announcement by index provider MSCI that it would
not yet include mainland-listed shares in its equity benchmarks
. But the market rose more than 1 percent at
one point as cuts to central bank growth forecasts fuelled hopes
of more stimulus .

Jun 5, 2015

Ukraine’s creditors say detailed debt talks still elusive

LONDON (Reuters) – A group of Ukraine’s creditors expressed disappointment on Friday that no basis had yet been found for detailed negotiations with Kiev on how to restructure its debt.

Kiev and a creditors’ committee led by Franklin Templeton had earlier held a teleconference aimed at reaching a deal to enable Ukraine to meet targets attached to a $40 billion bailout package led by the International Monetary Fund.

Jun 4, 2015

Wild Bund yield ride takes emerging assets to multi-month lows

LONDON, June 4 (Reuters) – Rising German and U.S. bond
yields knocked emerging assets hard on Thursday, with stocks
down almost 1 percent while currencies, from the Indonesian
rupiah to the Russian rouble, hit multi-month or multi-year
lows.

A six-week-long bond market selloff is rumbling on, with
German and U.S. 10-year yields at their highest since October.
The former is almost a percentage point higher than in mid-April
. Japanese yields surged to six-month highs.

Jun 3, 2015

Qatar stocks fall 2 pct on World Cup fear; higher US, German yields worry EM

LONDON, June 3 (Reuters) – Qatari stocks slumped as much as
2.6 percent on Wednesday as the resignation of Sepp Blatter as
head of soccer’s governing body FIFA raised fears the Gulf state
could lose the right to host the 2022 football World Cup.

The move come against a stormy backdrop of rising German and
U.S. bond yields, though a retreat in the dollar provided some
respite to emerging currencies.

May 29, 2015

Cash holdings rise as investors fear reverse for expensive stocks, bonds: poll

LONDON (Reuters) – Fearful of a looming tumble in stocks and bonds from multi-year highs, global investors have increased the share of safe-haven cash in their portfolios to the highest levels in seven months, while also raising allocation to property.

World stocks hit record highs earlier this month .MIWD00000PUS while Japanese shares .N225, trading off the weak yen, are at 15-year peaks. European bourses from Spain to Germany are up 10-20 percent year-to-date, thanks primarily to money-printing operations in Japan and the euro zone.

May 20, 2015

Ukraine’s smaller bondholders unfazed by moratorium threat

LONDON, May 20 (Reuters) – Many holders of Ukrainian bonds
are unperturbed by Kiev’s threat to halt debt payments, noting
that a moratorium would merely bring forward a widely
anticipated default and could even result in a better long-term
deal for investors.

Kiev has ratcheted up pressure on its creditors, the biggest
of which is investment firm Franklin Templeton, by passing a law
allowing the government to call a moratorium on sovereign bond
payments. The finance ministry said it would do so unless a
“good-faith, collaborative” solution was found.

May 19, 2015

ECB comments lift central European assets

LONDON, May 19 (Reuters) – Stocks and currencies in central
Europe rose on Tuesday on European Central Bank comments about
its bond-buying programme, and a 3 percent surge by Chinese
equities lifted the main emerging markets index to near a
two-week high.

Other emerging market currencies were weaker as the dollar
rose further from its recent four-month lows, but stocks
tracked a record-high close on Wall Street. They got another
boost from an ECB official’s comment that the bank would
front-load its bond purchases.