Currency manipulation is gaining ground as governments look to grow exports and control inflows. But any talk of imminent currency conflict is overblown, say credit investors.
Corporates to drive EM growth but watch financial market development, say Credit Institute panellists
Panellists in the Credit Institute forum on ‘Sovereign or Corporate, Global or Local’ said that corporates will drive credit growth in emerging markets, but investors cannot afford to ignore financial market development or to forgo due diligence.
All about the assets: Andrew Dalton profile
Chief strategist at CreditSights Louise Purtle warns that global deleveraging makes double-dip recession more likely than inflation.
Federal Reserve measures to boost economic growth pose the biggest risk to continued growth and to rational markets, says William Cunningham, global head of fixed income research at State Street.
US corporate restructuring and balance sheet improvements have drawn investor focus to corporate credit. But technical factors make financials look attractive.
On shaky ground
The Q2 slowdown in US growth is no short-term blip, according to investors.
July saw amendments to Basel III, the signing of the Dodd-Frank reform bill, and the results of stress tests on European banks. Credit assesses how investor sentiment towards the banking sector has been affected by this activity.
China’s local governments have channelled their debt through off-balance sheet financing vehicles that leave creditors little recourse to repayment in the event of default. Calls to reform this system could result in the formation of a municipal bond...
Ever since its launch in 2007, China Investment Corporation, China’s sovereign wealth fund, has attracted widespread fear and suspicion. But its potential to move markets may have been overplayed.
Larry Brainard, chief economist at political risk consultancy Trusted Sources, argues that until Eurozone policymakers shift the emphasis of remedial action from sovereign debt and onto the banking sector, the region will continue to struggle.
Iraq is beginning to open its doors again to international investors. With the country needing to raise capital to develop the infrastructure required to exploit its energy reserves, Credit looks at the role bond issuance could play in Iraq’s future.
Bond investors voice concerns over freedom given to national regulators to determine trigger events for conversions or haircuts.
Bond investors have snapped up German Bunds in recent weeks, with Europe’s sovereign debt crisis triggering a flight to quality. But is Germany really the safe haven it appears? Credit explores potential vulnerabilities in the German economy and assesses...
Strengthening fundamentals in the US and continued uncertainty over peripheral European economies have given rise to the notion that the US and Europe are undergoing a decoupling process. Credit looks at what this may mean for the US government bond and...
Inflation often accompanies the end of the recovery after a crisis, but while US companies may fear high inflation, banks and investors increasingly see deflation as the more serious risk to the US economy.
On a recent visit to New York, Credit met up with senior figures at three of the largest fixed income asset managers globally to hear their thoughts on where the US credit market is heading next and what the risks are for investors.
Much work needs to be done to salvage Europe's banking sector but the continent's leaders are proving unequal to the task, says Larry Brainard.
The viability of the Eurozone project continues to weigh on fixed income market, says chief investment officer of DB Advisors.
Index-linked bonds are where investors will find value as the effects of the financial crisis unwind, advises founder of Ruffer LLC.
The Chinese Communist Party’s former leading economist, Zhang Wei, explains how revaluing the renminbi is in China’s interests, why the financial markets are such a headache for the country’s leaders and how the new generation may yet prove to be...