02/07/2014
"American" Revenues fell to 2.5%
Sales emerging market bonds in excess of $ 260 billion
Emerging market bonds microfinance borrowers sold more than $ 260 billion in the first half of 2014 beyond levels one year ago despite geopolitical unrest, while speeding up borrowers to take advantage of lower-than-expected earnings for US bonds. Faced with market bonds denominated in hard currency troubles because the Ukrainian crisis and the sharp decline in sales of the Russian bonds. However, US bond yields decline for ten years — the measure of most emerging market bonds-50 basis points eclipsed the impact of geopolitical risks.
As a result, strong versions came some analysts suggests that Governments and companies already completed two-thirds of the expected releases for the whole year. And Thomson Reuters data showed that by Friday, the bond sales since the beginning of the year 268 billion dollars up from Governments to share 67 billion dollars while the remaining companies were collected. In comparison, amounted to $ 240 billion versions a year ago sold the Governments 50 billion dollars, according to the data. U.S bond yields have dropped this year as opposed to expected to 2.5 percent from 3 percent at the end of 2013 because of relatively weak US data and the policy of the fed (US Central Bank) which tend to monetary loosening. But the Fed is expected to start raising interest rates in the second half of 2015 bond sellers, therefore, seeks to take advantage of the market by rising costs of lending.
According to estimates by the Bank of America Merrill Lynch to bond sales since the beginning of the year to 258 billion dollars while j. Morgan sovereign bond issues exceeding $ 60 billion, equivalent to two-thirds of the projected levels for the year. J. Morgan Said, companies sold more than $ 200 billion. Often differ because of the different versions of the data standards define emerging markets. Despite the intensity of the foreign currency bond issues in emerging markets is one of the best performing asset classes in 2014 with a return on sovereign bonds to more than 9 per cent. Russian companies generally issue bonds in large volumes but the conflict in Ukraine and the West's threat to impose sanctions because of Moscow's annexation of the Crimea has led to reluctance to market since the end of February.
And Thomson Reuters ' data showed that the total value of Russian bonds amounted to seven billion dollars this year after that exceeded $ 25 billion in the first half of 2013. However, with debt of about $ 150 billion in 2014, companies began to return to the market and bring the Bank sberbank sold bonds last week. Russian borrowers turned like many of their counterparts in emerging market bond markets denominated in the euro, which dropped its borrowing costs by facilitating the European Central Bank's monetary policy. And loan issuers in emerging markets 42.1 billion euros (57.4 billion dollars) or 21 percent of them, compared with 40 billion euros in 2013 as a whole.
