Emerging market corporate bonds can provide higher returns for an equivalent risk

Emerging markets are turning into a mainstream asset class providing a wider bond market corporate issuers with diversification as a key element. Source: The National Corporate bonds have a long tradition in developed markets, with a large investor base across the credit rating spectrum. Over the past decade, corporate bonds of issuers based in emerging…

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Local Bonds Are All the Rage in EM as Investors Buy Up ETFs

Federal Reserve’s dovish stance and US – China trade talks have increased demand for Emerging Market Local Government Debt Source: Bloomberg If investors wanted evidence that demand for local-currency bonds isn’t fleeting, here it is: The biggest exchange-traded fund tracking local debt in emerging markets has seen 17 weeks of inflows. The $9.7 billion iShares…

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Electronic Bond Orders Spark Race to Develop Platform for $2.3 Trillion Market

Regulators and investors are suggesting increased transparency in primary issuance markets by streamlining the traditional trading process through an electronic trading platform. Source: Bloomberg A tussle is emerging between underwriters over who controls the levers of a $2.3 trillion market for new company bonds, with the U.S. as the chosen battleground. Tech firm Ipreo, jointly owned…

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The Bear Market in Bonds Already Looks Shaky

Although bond bears believe that the future holds lower bond prices, experts believe they are bound to be disappointed once again. Source: Bloomberg The New Yorker magazine once ran a cartoon depicting two politicians sitting in an office in the shadow of the Capitol, with a man behind the desk saying, “Those who ignore history are…

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Tensions Build Over Bond Allocations and Pricing Feedback

Investors’ reluctance to share bond pricing feedback with syndicate bankers intensified by new regulations Source: Thomson Reuters LONDON, Dec 2 (IFR) – Bond investors and syndicate bankers are growing increasingly frustrated with each other as the already thorny topic of allocations and how to reward investors for their feedback is being further poisoned by new regulations….

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