Investment strategy Correspondent
Sujata's Feed
Jun 26, 2015

Emerging H1 bond sales stutter; more than a fifth below year-ago

LONDON, June 26 (Reuters) – Bond sales from emerging markets
in the first half of 2015 are running more than a fifth below
year-ago levels due to the continued slump in issuance from
Russia, Brazil and oil producers across the developing world.

Governments and companies from the developing world had sold
hard currency bonds worth $195 billion as of June 19, Thomson
Reuters data shows, well below the $292 billion raised in the
first six months of 2014.

Jun 25, 2015

Emerging shares snap 3-day winning streak as China, Greece weigh

LONDON, June 25 (Reuters) – Emerging stocks snapped a
three-day losing streak on Thursday as Greece’s debt
negotiations dragged on and Chinese stocks suffered heavy losses
despite an easing in bank lending rules.

Receding hopes of a last-minute bailout deal to help Greece
avert default next week have fuelled losses on global equity
markets, with MSCI’s emerging index down half a percent
following 3.5 percent gains in the past six days.

Jun 24, 2015

With IMF backing, Ukraine heading for September debt moratorium

LONDON (Reuters) – Ukraine is likely to pay all bond coupons falling due over the summer but a $500 million maturity in September could mark a halt to debt repayments if a restructuring deal has not been reached by then.

War-ravaged and on International Monetary Fund life support, Ukraine has threatened to suspend payments if bondholders fail to accept demands for a 40 percent writedown, or “haircut”, in the face value of its sovereign bonds.

Jun 22, 2015

East Europe benefits from Greek deal hopes

LONDON, June 22 (Reuters) – Signs of a last-minute deal to
prevent a Greek default propelled emerging stocks to their
biggest one-day rise in more than two months and the relief also
lifted emerging currencies, especially in eastern Europe.

MSCI’s emerging equity index rose 1 percent,
pulling off 2-1/2 month lows hit last week when Athens appeared
headed towards default and a euro exit just as the U.S. Federal
Reserve is preparing for its first rate rise in almost a decade.

Jun 17, 2015

Dividend hunters eye emerging markets, helped by local pension funds

LONDON, June 17 (Reuters) – Once mainly growth-based
investments, emerging markets are seeing a dividend payout
culture take root among companies, especially in countries where
big local pension funds are pushing for change.

Emerging companies paid a record $119 billion in dividends
last year, double 2009 levels and more than three times what
they paid in 2005. Payout ratios — the percentage of earnings
given in dividends — exceeded developed countries by 4 percent,
according to Aye Soe, research director at S&P Dow Jones
Indices. (link.reuters.com/dac94w)

Jun 17, 2015

Fed, Greece squeeze EM assets; debt spreads rise to 400bps vs Treasuries

LONDON, June 17 (Reuters) – Emerging dollar bonds’ premium
over Treasuries briefly rose to 400 basis points on Wednesday
for the first time since April and currencies fell as
nervousness grew over Greece and a Fed meeting later in the day.

It looks increasingly unlikely that a Thursday meeting of
European Union finance ministers will make progress on
preventing a Greek default while the U.S. Federal Reserve is
expected to signal a September rate increase later in the day.

Jun 16, 2015

Eastern Europe feels heat from Greek debt spillover

LONDON, June 16 (Reuters) – Polish 10-year bond yields hit
10-month highs on Monday, bearing the brunt of eastern European
jitters over Greece’s impending default while broader emerging
equities were poised to fall back into the red for 2015.

The collapse of Greece’s cash-for-reforms talks raises the
prospect of a debt default in two weeks, when Athens faces a 1.6
billion euro repayment to the International Monetary Fund,
prompting investors to flee equities and higher-risk bonds in
favour of safer German and U.S. debt.

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.