Business
Emerging Market Bond Handlers Recoup Losses
Emerging-Market bond investors recovered their losses from the worst financial crisis since the Great Depression as a rally in debt from Argentina to Ukraine pushed JPMorgan Chase & Co’s benchmark index to a record.
The index, which tracts total returns on the foreign-currency debt of developing nations, has soared 43 per cent from its 2008 low to 445.14 Friday, the highest since the index began in December 1993, JPMorgan’s guage had dropped to as low as 311.87 in October after Mortgage losses at US banks caused global credit markets to freeze and New York-based investment bank Lehman Brothers Holding Inc to collapse in September.
“It’s probably the strongest recovery we’ve had in history” said Nigel Rendell, a senior emerging-market strategist at RBC Capital Markets in London. “The question is if it’s sustainable I would be much more cautions going forward, because markets just don’t keep going up forever.”
Leaders of the world’s biggest-economies pledged more than $1 trillion in April to bolster developing-nation finances by tripling the amount the International Monetary Fund can lend to rescue crisis-stricken countries to $750 billion to shore up foreign-exchange reserves. Bonds issued by Pakistan and Ukraine have led this year’s rally after the countries received IMF financing.
While the index is at a record high, the extra yield investors demand to own emerging-market bonds instead of US Treasures is 2.58 percentage points wider than its record low on June 1, 2007. The so-called spready today narrowed 7 basis points to 4.07 percentage points.
Indonesia sold 35 billion yen ($374 billion) of 10-year Samurai bonds Friday, even after bomb blasts in Jakarta killed eight people, a banker involved in the transaction said. Hungary raised 1 billion euros ($1.4 billion) in its first international sale of bonds since an emergency bailout last year.
Developing-nation bonds have recovered losses faster than global equities and commodities. The Emerging Markets index of equities in 22 countries is 42 per cent below its peak on October 2007. while the World Index of 23 developed nations has dropped 41 per cent. The Reuter/Jefferies CRB Index of commodities is down 49 per cent from its high on July 2, 2008.
The last time emerging market bondholders suffered losses of at least 30 per cent was during the aftermath of Russia’s 1998 default on $40 billion of domestic debt. The index dropped 36 per cent from March through September of that year, and took 15 months to recoup its losses. That compares from the low in October.
We had a clear panic move in September and October of last year, said Luis Costa, an emerging-market debt strategist at commerzbank AG in London.
Business
PENGASSAN Tasks Multinationals On Workers’ Salary Increase
Business
SEC Unveils Digital Regulatory Hub To Boost Oversight Across Financial Markets
Business
NAFDAC Decries Circulation Of Prohibited Food Items In markets …….Orders Vendors’ Immediate Cessation Of Dealings With Products
Importers, market traders, and supermarket operators have therefore, been directed to immediately cease all dealings in these items and to notify their supply chain partners to halt transactions involving prohibited products.
The agency emphasized that failure to comply will attract strict enforcement measures, including seizure and destruction of goods, suspension or revocation of operational licences, and prosecution under relevant laws.
The statement said “The National Agency for Food and Drug Administration and Control (NAFDAC) has raised an alarm over the growing incidence of smuggling, sale, and distribution of regulated food products such as pasta, noodles, sugar, and tomato paste currently found in markets across the country.
“These products are expressly listed on the Federal Government’s Customs Prohibition List and are not permitted for importation”.
NAFDAC also called on other government bodies, including the Nigeria Customs Service, Nigeria Immigration Service(NIS) Standards Organisation of Nigeria (SON), Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigeria Shippers Council, and the Nigeria Agricultural Quarantine Service (NAQS), to collaborate in enforcing the ban on these unsafe products.
-
Politics5 days agoTinubu Increases Ambassador-nominees to 65, Seeks Senate’s Confirmation
-
Sports5 days ago
Obagi Emerges OML 58 Football Cup Champions
-
Sports5 days agoFOOTBALL FANS FIESTA IN PH IS TO PROMOTE PEACE, UNITY – Oputa
-
News5 days agoFubara Assures Greater Collaboration With Navy
-
News5 days agoRHI: First Lady Gives N50m Business Grants To Rivers PWDS, Disabled Veterans …As RGS Unveils Free Medical Services For Vulnerable Persons
-
Politics3 days agoWhy Reno Omokri Should Be Dropped From Ambassadorial List – Arabambi
-
Oil & Energy2 days agoNCDMB Unveils $100m Equity Investment Scheme, Says Nigerian Content Hits 61% In 2025 ………As Board Plans Technology Challenge, Research and Development Fair In 2026
-
Sports2 days agoNigeria, Egypt friendly Hold Dec 16
