Emerging market companies are increasing bond sales this year at the fastest pace in more than a decade while US and European corporate borrowing slumps as investors shift to debt from the fastest-growing economies.
A Hong Kong-based toll road company will sell renminbi-denominated bonds to international investors this week in a little-noticed deal that marks an important change in China’s currency controls.
Investors, spooked by the roller coaster ride in the equity markets, the “flash crash,” and sovereign debt problems overseas, are flocking to bond funds for safety and yield.
Brian Coulton, the agency’s head of sovereign ratings, said German members of the ECB appeared to be blocking the sort of muscular intervention in southern European bond markets needed to restore the shattered confidence of investors.
Foreigners resumed their substantial purchases of Canadian securities in April, increasing their holdings by C$12.4 billion ($12.0 billion), Statistics Canada said on Friday.
Pimco, the California-based investor with $1tn (£678bn) of assets under management, has launched its first European stocks fund. The move marks a new era for the world’s biggest bond investor, which has traditionally focused on fixed income.
A low appetite for risk and lingering uncertainty about the health of the stock market has many consumers weighing the pros and cons of bonds and other fixed income investments.
Investors yesterday swarmed the government’s last auction for Treasury bonds (T-bonds) this year after the Bureau of the Treasury (BTr) extended the tenor of the debt paper to 25 years from the original plan of 10 years.
China’s banking regulator has given three commercial lenders approval to invest in bonds listed on domestic stock exchanges, ending a 12-year ban, a report said on Wednesday.
Brazil on Monday said its move to purchase up to $10 billion in bonds issued by the International Monetary Fund will assist the country in diversifying its foreign reserves.
