Having heaped losses on investors during a miserable fourth quarter of 2018, risk assets rallied as the new year got under way. The dramatic recovery came about because assets started to look cheap and investors were under-invested, although the biggest source of comfort came from Federal Reserve chairman Jay Powell, who called time on rate rises and even raised the prospect of loosening policy later in the year. Meanwhile, the European Central Bank also delivered a surprise on the upside, by ap

SSA issuers, particularly agencies, have been among the most prolific issuers in the sustainable development bond market. The idea was that issuers could demonstrate their commitment to issues that resonate with customers, investors and voters, while also funding on competitive terms. SDBs help public sector borrowers achieve their mandated political objectives, be that the promotion of renewable energy with Green bonds, cleaning up water resources with Blue bonds or increasing provision of affo

Everywhere you turn in Sri Lanka, you see the mind and the money of the People’s Republic of China at work. Both are visible when you stand in Colombo, staring at the vast new offshore financial hub taking shape. Port City, funded by loans from China Development Bank (CDB) and built by another powerhouse state firm, China Communications Construction Company (CCCC), aims to attract US$13bn in investment over the next 20 years. Venture south to the flattened base of this teardrop-shaped isla

Descriptions of new Federal Reserve chairman Jerome Powell’s volte-face in policy at the end of January range from the euphemistic to the blunt. It has been termed a ‘pivot’, which perhaps comes under the heading of euphemism, but also, more bluntly, ‘U-turn’ and a ‘180 in four weeks’. It has also been wondered whether the Fed buckled under pressure from President Trump, who mused whether the Fed had ‘gone loco’ in hiking rates. But perhaps t

A monetary cycle that was supposed to have seen the Federal Reserve and European Central Bank back quickly away from their stimulative policies and move into full-blown tightening has been replaced by a rapidly hatched Plan B. Markets are struggling to figure it all out. Under the umbrella of a much gloomier growth outlook, Plan B is dovish. It is a stance induced by poor economic data, lower growth forecasts, US-China trade tensions and political strife, including the vexed question of Brexit.

When Benin began the roadshow for its debut €500m bond in March, there was a familiar-looking disclosure tucked away in the prospectus that has been attracting increased scrutiny from investors. The country said it is planning to spend close to US$1bn on a new international airport that is expected to be funded by the Export-Import Bank of China. Such Chinese-funded infrastructure projects are accelerating in Africa, with Chinese loans to sub-Saharan African countries rising to more than US

The strength of the bond market in 2019 is masking the differences between peripheral credits and leading to some level of convergence. Greece, Italy, Spain and Portugal have all done deals in Q1, with all enjoying healthy order books. It is a market in which few expect the European Central Bank to raise rates, given tepid growth and inflation that is projected to remain below target for years to come. Slowing growth in the EU as a whole has boosted bond markets, raising expectations for supply

Venezuela’s parallel government, led by Juan Guaido, the president of the country’s National Assembly, must consider a long-term debt restructuring that does not penalise foreign bondholders in a draconian manner. Otherwise, a new administration could be mired in litigation and cut off from international capital markets for more than a decade, warn experts. The country is still nominally led by Nicolas Maduro, who took over the presidency in April 2013 upon the death of Hugo Chavez,

Britain has dominated business headlines around the globe this year, albeit mostly for the wrong reasons – its perpetually fumbled attempts to leave the European Union. But amid the political chaos, one market has quietly boomed: the sterling bond market. In particular, sovereigns, supranationals and agencies have flooded into sterling since the start of the year. “Sterling is off to a flying start and [showing] resilience this year,” said Jonathan Peberdy, head of syndicate at