Investing in emerging markets has always been a pursuit best avoided by the faint-hearted. Typically boasting less liquidity than developed markets, and usually backed by less robust and diversified economies, they are renowned for their volatility. As a place to invest or set up a business, many have excessively complex legal and regulatory systems, among other assorted hurdles to doing business, that dissuade any but the specialist from participating. The performance of emerging markets as an asset class during the credit crisis showed that...Read more
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IFC – the private sector development arm of the World Bank – has expanded its business in response to the financial crisis, and nowhere more than in the area the IFC calls Europe, Middle East and North Africa. Using Istanbul as its second headquarters, it has responded to the crises these regions have faced. But will it maintain its relevance once the markets recover? Nick Lord reports.
As global local currency issuance picks up again, the debate over making local markets Euroclearable returns. But with politicians cautious about the impact such a move might have on their currencies and economies, the path from talk to action may be arduous. Christopher Langner reports.
The extent to which European emerging markets have outperformed peripheral eurozone sovereigns was underlined by Croatia’s latest 10-year dollar Eurobond, which trades well inside the Irish and Portuguese curves. Such strength partly reflects US funds’ appetite for EM dollar paper and their distrust of the eurozone straitjacket. John Weavers reports.
While 2009 was the year of jumbo record breaking deals, this year’s issuance is unlikely to match those figures. But issuance has been more evenly spread between the Gulf jurisdictions in 2010, and origination desks are confident the primary market will pick up. Bakyt Azimkanov reports.
With holdouts largely on board after the exchange reopening and short-term debt dynamics looking favourable, Argentina can now relish the prospect of returning to the international bond markets. That could be a while off, however, as the price-sensitive sovereign awaits yield levels that may require a significant policy shift. Paul Kilby reports.
Turkish banks have broadened their funding activities in recent months, taking advantage of the lucrative relationships they have with banks around the world. But as they move away from the syndicated loan market will they be able to maintain their momentum? Nick Lord reports.
Global banks are rushing to set up shop in the lucrative Polish market to exploit its strong growth and economic fortitude. But establishing a presence there presents numerous challenges, to which banks have found an array of different solutions. But it remains unclear what impact this interest will have on the market, while some also question whether banks will stay in Poland for the long haul. Denise Bedell reports.
Investors have been flocking to Thailand even as political instability threatens the country. A strong regional economy is lending support to local industry and with Thailand enjoying an economic boom, its financial markets are offering attractive returns to investors, writes Han-Nee Tay.
South Africa has been the sleeping giant of emerging markets for many years. While emerging European ECM issuance was rampant from 2005 on, South Africa was a rare source of interest. Yet volumes are climbing while Russia slumbers and 2007 totals are now in sight. Owen Wild reports.
It may have drawn criticism from those who view the growing commercialisation of microfinance as a threat to its true goal. But the wildly popular SKS Corp IPO clearly illustrates investors’ growing interest in microfinance. But the industry needs to mature in terms of governance, while investors need to get their heads around the challenge of conducting due diligence on small institutions, often operating in remote areas. Savita Iyer-Ahrestani reports.