Investment strategy Correspondent
Sujata's Feed
Oct 9, 2014

Russia reserve fall defies emerging markets trend in 2014

LONDON, Oct 9 (Reuters) – Sanctions-hit Russia has lost
around a tenth of hard currency reserves so far this year in
dollar terms, bucking a generally rising trend across most
emerging markets.

Developing economies that spent billions of dollars last
year to support their currencies are being forced to do so again
in recent weeks as the dollar rises on expectations of higher
U.S. interest rates from mid-2015.

Oct 9, 2014

Emerging-market assets get respite as dollar pulls back

LONDON, Oct 9 (Reuters) – A decline by the dollar boosted
most emerging-market assets on Thursday, with the main equity
index up 1 percent and bond yields at multi-week or even record
lows. The rouble steadied after hefty central bank
interventions.

Bond yields in Poland hit record lows across the curve after
a larger-than-expected rate cut, dragging down yields in central
Europe. South African yields tumbled to one-month lows, tracking
U.S. Treasury moves.

Oct 8, 2014

Dollar surge forces central banks to tap reserves

LONDON (Reuters) – The U.S. dollar’s recent surge to four-year highs has forced central banks across the world to intervene on open markets to prevent their currencies falling too sharply.

As the Fed ends its asset purchase programme this month and investors brace for higher U.S. interest rates next year, yields on U.S. Treasury bonds have climbed relative to those of other governments. Dollar-funded ‘carry trades’ – where traders borrow in low interest currencies to buy higher yielding but riskier assets – are also being rapidly unwound.

Oct 8, 2014

Factbox: Dollar surge forces central banks to tap reserves

LONDON (Reuters) – The U.S. dollar’s recent surge to four-year highs has forced central banks across the world to intervene on open markets to prevent their currencies falling too sharply.

As the Fed ends its asset purchase program this month and investors brace for higher U.S. interest rates next year, yields on U.S. Treasury bonds have climbed relative to those of other governments. Dollar-funded ‘carry trades’ – where traders borrow in low interest currencies to buy higher yielding but riskier assets – are also being rapidly unwound.

Oct 6, 2014

IMF wants tougher bond pacts to avoid Argentina-style default rows

LONDON, Oct 6 (Reuters) – The International Monetary Fund on
Monday urged a rethink of how sovereign bonds should be
structured to avoid future debt restructurings turning into a
repeat of Argentina’s disruptive court battle with a few
disgruntled creditors.

A detailed IMF paper laid out a series of recommendations
that centred on enhancing so-called collective action clauses
(CACs) embedded in most sovereign bond contracts, on modifying
clauses on the “pari passu” equal treatment of creditors, and on
the IMF’s role in promoting the use of such clauses.

Oct 3, 2014

Teetering rouble overshadows lure of cheap Russian stocks

LONDON, Oct 3 (Reuters) – Russia’s beaten-down stocks may
have tempted U.S. fund giant Franklin Templeton but few other
investors are following, as the country’s economic meltdown
fuels a nosedive in its currency that could render any
investment worthless.

Templeton stepped forward in September, arguing a recent
sharp sell-off had gone too far and that the benefits of cheap
Russian equity could not be overlooked against world stock
markets at historically expensive levels.

Oct 2, 2014

Russia crisis, oil price fall dim appeal of first Kazakhstan Eurobond since 2000

LONDON, Oct 2 (Reuters) – Energy-rich Kazakhstan, gearing up
for its first Eurobond in over a decade, is seeing its appeal
dimmed by falling oil prices and the crisis in nearby Russia,
potentially forcing it to give investors a slightly higher yield
premium than expected.

Kazakh government officials are meeting investors in Britain
and the United States this week, aiming to enter the market for
the first time since a previous bond expired in 2007.

Oct 1, 2014

No sign of Naftogaz’s $1.6 bln bond payment yet-bondholder

LONDON, Oct 1 (Reuters) – A fund manager who holds a
Eurobond issued by Ukraine’s Naftogaz said on Wednesday he had
not yet received payment for the sovereign-guaranteed bond,
which matured on Sept. 30.

The $1.6 billion Eurobond is fully
guaranteed by the Ukrainian government, so if it is not paid
within a grace period, it will trigger so-called cross-default
clauses, bringing due all of Ukraine’s sovereign bonds at once.

Sep 30, 2014

Despite Fed, Russia, emerging bond issuance booms

LONDON, Sept 30 (Reuters) – Shrugging off fears over the
Fed, Russia and a default in Argentina, emerging market
borrowers are on track for record bond issuance volumes this
year, and their 2013 level may have already been surpassed.

A total of $459 billion was raised in the first nine months
of 2014, just above the $456 billion sold in the whole of last
year, according to data from BNP Paribas. Emerging governments
raised just over $100 billion of this, while the private sector
accounted for $354 billion, BNP Paribas said.

Sep 24, 2014

As Ukraine’s debt tangle unwinds, Russia holds key thread

LONDON (Reuters) – A selloff on Ukraine’s dollar debt is focusing attention on a controversial $3 billion bond held by Russia, raising investor concerns that President Vladimir Putin could use the issue to trigger a cascade of defaults across Kiev’s sovereign Eurobonds.

The so-called bail-bond, taken out late last year by former Ukrainian President Viktor Yanukovich, carries a clause which – given Kiev’s steadily worsening finances – may enable the Kremlin to demand immediate repayment.