MUFG has a wealth of expertise in energy and natural resource infrastructure finance, which lends itself quite nicely to understanding how to measure risk in areas ripe for green bonds and similar instruments, and the bank is of course very active in bringing borrowers into the green bond market. We speak with Geraint Thomas, Executive Director at MUFG and leader of the bank’s green capital markets activity to learn more about how EM issuers and investors are finding their way in the green bond market, and the development of new sustainable finance instruments.
The rally in EM assets this year seems all but unstoppable as investors continue hunting for yield further afield amidst persistently low interest rates in developed markets and a weakened US dollar. Is it set to continue? Bonds and Loans speaks with global investors one-on-one about macro trends influencing EM debt capital markets.
Paraguay’s nascent capital markets sprang to life this year off the back of the country’s first cross-border bond sale in four years, part of the government’s strategy to develop the local market. The country’s industrial base and infrastructure ambitions also positions Paraguay very well for the green bond market, potentially opening the South American country up to vast new pools of liquidity. Bonds & Loans speaks with Lea Giménez, the country’s recently appointed Minister of Finance, on this and more.
3 Aug 2017
When it became apparent, after the collapse of Lehman Brothers, that the global economy was encountering something more than just an ordinary downturn, most market observers were certain they knew what was in store for emerging markets. After all, the three decades prior to 2008 were littered with crises in developing economies from Mexico to Malaysia. Still, while the worst never came to pass for EMs after 2008, a huge liquidity mismatch has persisted since.
Brazil offers a good example which illustrates the difference between signal and noise in investing. A complete mess from a journalistic perspective, Brazil has been one of the best investments in global fixed income markets and continues to offer an attractive investment proposition. We examine why countries with so much bad news can be such excellent investments.
Saudi Arabia’s emergence in the international capital markets, first through the sovereign’s US$17.5bn conventional bond followed months later by its US$9bn sukuk, has the potential to herald one of the biggest shifts the region’s markets have seen in years.
The court’s decision to award the oil pipeline monopoly RUB67bn in compensation for an options trade originating in 2014 could take a trillion-rouble toll on the country’s secondary markets.
As investors continue to flock to the nascent but growing green bond market, many still struggle to gain deep insight into the ‘greenness’ of different instruments, one of the key obstacles holding the market back.
The 2008 subprime mortgage crisis in the US, and the aftershocks sent through global markets for years on, exposed weakness in the banking sector, the capital markets, and the financial system as a whole. Credit rating agencies were not the prime target for blame at the time, but gradually, their role in the crisis has emerged. Ten years on, Bonds & Loans explores some of the failures in the lead-up to the crash and the lessons that have (or have not) been taken from it.
This year’s El Niño brought a level of rain, flooding and mudslides not seen in Peru in decades. But despite the vast reconstruction needs emerging in the wake of the storm, analysts have been careful to parse the human cost from economic output. Markets remain resolutely upbeat.
- Turkey’s Sovereign Wealth Fund Promises Better Governance, More Synergies to Bolster Returns
- Investors Eye Zambian Reforms as Lungu Faces Crucial Test
- Standard Bank: A “Two-Speed” Africa is Emerging
- Can Chile Get its Groove Back?
- Rising Commodity Prices Give Emerging Markets Much Needed Boost