So, your reputation has taken a battering in recent years and you’re now just about out of the spotlight. And, even if you’re not deeply loved, at least most people have got bored of calling you the Vampire Squid.
Money managers seeking access to EM domestic debt have a new option from Thursday with the launch of what is claimed to be the world’s first exchange traded fund for emerging market inflation-linked bonds. Continue reading »
Foreign currency debt – that’s the problem facing György Matolcsy, Hungary’s central banker, known for his unorthodox policies. More than half the household and company debt in Hungary is not in forints. Peter Attard Montalto, emerging markets economist at Nomura, discusses with deputy emerging markets editor Jonathan Wheatley how Hungary is tackling this and the resilience of foreign investors despite such risks.
A $400m credit deal signed by Croatian energy company INA gives it the opportunity to push ahead with long-term growth plans while also providing a welcome vote of confidence in the country’s economy. Continue reading »
South African corporate bond issues are still on the up after a record 2012.
Recent figures from Absa Capital, a subsidiary of Barclay’s, show the rise continuing into 2013. If issuance so far is any indication of what’s to come in the rest of the year, an increase of more than 50 per cent looks possible. Continue reading »
The final judgement in the legal battle between hedge funds and Argentina is on the horizon – a case that is pivotal to the sovereign debt market. Robin Wigglesworth, capital markets correspondent, discusses with Michael Stothard whether the outcome could trigger another Argentine default.
No surprise then that it plans to take advantage of low borrowing costs in international debt markets. President Paul Kagame this week revealed more details of the east African nation’s anticipated debut eurobond issue. Continue reading »
First it was investment grade bonds. Then it was high yields. Could subordinated debt be the next must-have asset for emerging markets investors?
On Friday, Banco do Brasil raised $2bn through the sale of a perpetual subordinated bond.
The issue, which carries an interest rate of 6.25 per cent a year, attracted $16.3bn in orders – a fierce level of demand given that it is a subordinated bond, meaning buyers are relegated to the lower rungs of a company’s capital structure and would not be the first to recover their capital if there is a default. Continue reading »
As Hungary prepares to tap the international bond market for the first time since 2011, here comes a stark reminder of the challenge facing Budapest.
Moody’s says in a report on Monday that Hungary has 2013 refinancing needs worth 19 per cent of GDP – that’s nearly double the average of 10 per cent for central and east European EU members. Continue reading »
Savvy as a market trader, Dubai knows when to strike bargain. With everyone mumbling that “Dubai is back” the government realised that now is the time to borrow.
So on Tuesday, the emirate sold $1.25bn in Islamic and conventional bonds, to appeal to a broad spectrum of buyers from the Middle East, Asia and beyond. Bankers said Dubai issued $750m of 10-year Islamic debt at 3.875 per cent and $500m of conventional 30-year notes at 5.375 per cent. Continue reading »
Russia’s consumer spending spree could be ending in tears. A credit-fuelled surge has led households to rack up unprecedented levels of consumer debt – so much so that in 2012 some 80 per cent of new consumer loans (excluding mortgages) are going towards interest on existing debt. This cannot go on.
“In Russia, the macro-economic risks are small,” says Natalia Orlova, chief economist at Alfabank, “But the risks in the banking sector are accumulating. Retail lending is becoming a high-risk segment.” Continue reading »
Dubai has been back for some time. The trade, tourism and transport that are the foundations of its economy have been thriving for a couple of years, bringing an air of optimism back to the city after its 2009 debt crisis.
Distressed debt players who took a bet on bonds issued by Blue City of Oman should be cheered by a chance to get out.
The Gulf country’s sovereign wealth fund has offered to buy “class B” subordinated notes of the ailing real estate project – a $20bn beachside development that stalled as the financial crisis took a grip. Continue reading »
Last autumn’s emerging market ‘currency quake’ has cast a long shadow over the local bonds of the developing world. But with the aftershocks fading, investors are beginning to return, write Robin Wigglesworth and Alice Ross. Continue reading »
Dana Gas on Thursday confirmed it had missed a $920m Islamic bond repayment and creditors said they would begin to claim against assets of the United Arab Emirates-based company, writes Simeon Kerr in Dubai.
However, the situation was a confusing one as Dana, listed in Abu Dhabi, said talks were continuing amid a standstill agreement, under which creditors have agreed not to enforce their rights in the event of non-payment. Continue reading »
After more than three years of fully open access, we are taking the step of asking our readers to register on FT.com to read our articles. Beyondbrics will still be free but we'd like to know a bit more about you, our readers. Other FT blogs (including Alphaville) already do the same thing. Registration is active on beyondbrics from May 6.
Many of you are already registered on FT.com, or are subscribers - in which case, if you are logged in to the site you will not notice any difference. Just carry on as before.
For those of you not yet registered, it's a simple process which only takes a few moments.
Reading beyondbrics articles will NOT deduct from your free monthly quota of stories on FT.com.