CEE Bonds

As the trade tension deepens between the US and its counterparts, fund investors have fled to US bonds and equities, leaving emerging market fund outflows on the rise for the most part of 2018.

Frontier markets specialists Exotix Capital has made four new appointments to its EM sales business, expanding its coverage in four different geographies.

Turkey was driven further into financial instability and chaos this week, reflected in tumbling asset prices and the lira being at near record lows, after the country's president Recep Erdoğan delivered a further blow to investor confidence with a cabinet reshuffle.

The news that Russia intends to plough ahead with its plans for funding in the international capital markets was greeted with some initial disbelief. At first glance, the international environment does not look good for a Russia return. But look again, and there is little reason to believe that demand for a Russian sovereign new issue would be anything but enthusiastic.

Turkey’s president Recep Erdoğan delivered a shock to investors on Monday, announcing a cabinet reshuffle in which he removed market favourites Mehmet Simsek, who was deputy prime minister, and Naci Agbal, minister of finance. He appointed his son-in-law Berat Albayrak, who previously served as energy minister, as finance minister.

The Russian Ministry of Finance has released its borrowing plans for the next three years, starting with a plan to borrow Rb1.48tr ($24bn) in 2019. Though the plan, which includes continuing to raise money internationally, is being seen as brazen, bankers in London said that there will be appetite.

Kazakhstan’s agricultural holding company KazAgro is conducting a liability management exercise to actively manage its upcoming debt maturities.

Corporate bond issuance from central and eastern Europe, excluding Russia, is up nearly 30% year on year as borrowers move early to lock in low coupons before the European Central Bank stops buying bonds and starts raising interest rates.

The Republic of Srpska, an autonomous entity in Bosnia and Herzegovina, has printed its five year Eurobond, but the final size fell short of the hoped for €200m.

Factors internal and external to the emerging markets are this week combining to stymie new issuance.

Republika Srpska, an autonomous entity in Bosnia and Herzegovina, has printed its five year Eurobond, but the final size has fallen short of the hoped for €200m.

Turkish assets gave back early gains on Monday morning as investors digested the news of the victory of Recep Tayyip Erdoğan and his AK Party (AKP) in the country’s presidential and parliamentary elections.