Organisation

The economy is on the mend and it is high time the raters take notice.

How banks, brokers and CSDs manage collateral is undergoing a once in a generation change. For market players looking at how they best prepare for this, it is important to analyse the process in which change occurs. In the world of collateral management, the revolution caused by new regulation is happening at the same time as the financial technology underpinning the sector is rapidly evolving. But that is not enough. Existing market players need to be willing adopters of the new ways of doing business, while outside innovators must also be allowed into the market. The final phase occurs when the market comes together to adopt a new set of standards that enshrines the revolution into a new way of working.

The financing of greenfield infrastructure projects in Southeast Asia has recently been boosted by the arrival of a new facility to guarantee bond investors against all risks during the construction period. The innovative solution was augmented on May 24 by the signing of a collaboration agreement between the Credit Guarantee & Investment Facility (CGIF), and Surbana Jurong Private Limited (SJ). The initiative is designed to boost the use of local currency-denominated project bonds to finance greenfield infrastructure projects in the Asean markets. GlobalCapital discussed the new facility with Kiyoshi Nishimura, CEO of CGIF.

There has never been a greater need for banks to monitor and manage their intraday and overnight liquidity provisions.

It won the Euros, it won Eurovision – now it is time to win back its lost investment grades.

Experts are beginning to feel more confident about Russia’s prospects, and its credit ratings will ultimately reflect this.

The decision by Moody’s to lower its sovereign rating on China was flagged-up in ECR’s crowd-sourcing survey more than a year ago, and it will mean higher funding costs in the offshore market.

Risk experts are still downgrading Azerbaijan in response to disappointing economic indicators, highlighting the effects of depressed oil prices and a lack of clarity from the government concerning its policymaking.

Euromoney’s country risk survey shows political risk rising in 64 countries this year. The march of populism is a key factor investors must consider before chasing tempting returns, but there are many others to guard against.

A stronger yen-won exchange rate underlines Japan’s perception of safety with Seoul now plunged into a crisis, awaiting elections and wary of tensions escalating on the Korean Peninsula.

Mexico is considered the most attractive emerging market (EM) by Bloomberg, but is not the safest according to Euromoney’s country risk metrics.

The borrower’s gradually improving risk profile could see it overtake Brazil and Turkey before too long.