Investment strategy Correspondent
Sujata's Feed
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

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.

May 18, 2015

Dollar bounce tempers currency gains; rouble outperforms

LONDON, May 18 (Reuters) – The Russian rouble rose almost 1
percent on Monday, shrugging off the central bank’s efforts to
curb its rise, although a bounce in the dollar tempered recent
broad-based gains in emerging currencies.

Asian currencies were led higher by the Taiwanese dollar at
six-month highs, tracking late Friday gains in other emerging
markets after latest data confirmed weaknesses in the U.S.
economy, pushing the greenback to 3-1/2-month lows.

May 17, 2015

Emerging bond funds scrambling for Asian debt in tight market

LONDON/HONG KONG May 17 (Reuters) – Emerging corporate bond
funds searching for debt to buy up in the absence of Russian and
Brazilian borrowers have found themselves jostling with a
growing number of cash-rich Asian investors for new issues from
the region.

Bonds from Asian companies, largely Chinese, are dominating
the new dollar issue market now that once-prolific Russian and
Latin American borrowers have been shut out by Western sanctions
on Moscow, a corruption scandal at Brazil’s biggest company
Petrobras, weaker commodity prices and fears of a default in

May 14, 2015

Russian companies could return to international bond market

MOSCOW/LONDON, May 14 (Reuters) – Russian companies could
return to international bond markets later this year after being
frozen out by Western sanctions over Ukraine as investor
appetite for the high-yielding debt picks up.

The prospect that non-sanctioned Russian firms would be able
to borrow was remote just a few months ago, but prices of
outstanding bonds have rallied since February, when the latest
truce was agreed in eastern Ukraine.

May 14, 2015

Rouble weakens as central bank buys dollars, bucks EM trend

LONDON, May 14 (Reuters) – Russia’s rouble fell 1.5 percent
on Thursday after the central bank intervened to knock it off 5
1/2-month highs, as other emerging market currencies held on to
the previous day’s gains against a weaker dollar.

Disappointing U.S. data reinforced expectations of U.S.
interest rates would not rise soon, leading most emerging market
currencies to rally on Wednesday. The dollar’s fall to
three-month lows overshadowed a renewed rise in German
bond yields, despite a knock-on effect on Treasuries.