Sentences with phrase «currency debt»

Now many more countries participate in the local currency debt market, and the average credit rating is closer to A --(Table 1).

It, and the foreign currency debt servicing payments, are therefore subject to valuation effects when the exchange rate changes; currency depreciation increases the debt - servicing costs in Australian dollar terms.

Local - currency debt appears well supported in an environment of low currency volatility.

Emerging Markets Local Income Fund (EEIIX) 5 Years Out of 14 Emerging Markets Local Currency Debt Funds

Most foreign trade is denominated in dollars and most of the foreign currency debt issued by corporations abroad is denominated in dollars.

Obama was a disaster, creating more counterfeit currency debt than all the presidents before him.

Hungary's own resources to cover financing needs would run out by the end of the first half without IMF assistance or a successful foreign - currency debt offering, according to William Jackson, an emerging markets economist at London - based Capital Economics Ltd..

We see selected opportunities in the asset class, especially in local - currency debt among broadening reflation and limiting risks from U.S. dollar appreciation, but high valuations keep us neutral overall.

«Local - currency debt issuance now exceeds external issuance,» notes Riches - Flores.

Consistent with the better economic outlook for Japan, Moody's upgraded Japan's long - term foreign currency debt rating in early April and S&P upgraded the outlook on Japan's domestic currency sovereign credit rating in late March.

Therefore, as the U.S. dollar appreciates against a local emerging market currency the debt service costs rise and make a risky asset even more risky.

Although government bonds are supposed to be guaranteed because they can use tax revenue to pay out the money, there have been instances of countries like Russia defaulting on its domestic currency debt.

This partly reflects tight hard - currency debt spreads, which curb the upside given limited scope for further spread compression — and creates a vulnerability to any rapid rate moves.

Since that time the market for local currency emerging markets debt has soared past $ 1 trillion, while external currency debt has grown from about $ 200 million to $ 500 million.

Emerging Markets Local Income Fund (EEIIX) 5 Years Out of 14 Emerging Markets Local Currency Debt Funds

The bottom line: Even after the recent outperformance, EM hard currency debt is a fixed income asset class worth tilting toward as we head into 2016.

Local currency debt in Asia totaled $ 441 billion in 2012, down 2 % from the record set in the previous year.

Those countries with less - developed institutions and financial systems, limited policy credibility, greater foreign currency debt and / or more precarious economic situations are certainly more exposed than others to external shocks.

Our emerging markets unit includes the sales and trading of global sovereign debt, non-US corporate debt and local currency debt.

Like many peer funds, but in contrast with our benchmark, EMB holds USD - denominated rather than local - currency debt.

However, while we are in the sweet spot, we do see selected opportunities among EM assets that investors may want to consider, including in EM local - currency debt and certain equity markets.

This is what occurs, for instance, when the IMF and World Bank act on behalf of global banks to demand that Brazil pay its foreign debt by privatizing its Amazon forest so that loggers can earn enough foreign exchange to pay foreign bankers on the nation's foreign - currency debt.

The rouble has weakened some 30 percent versus the dollar this year, as Western sanctions over the Ukraine crisis have made it harder for banks and companies to refinance foreign currency debts and as tumbling oil prices have hurt government revenue.

Unhedged foreign currency debt, as was prominent in 1997, means that a fall in the currency pushes up debt servicing costs for the government, local corporates and banks, but a rise in interest rates to assist the exchange rate has the same adverse effect.

Stronger EM currencies have boosted the performance of EM local - currency debt this year.

And these deficits are now being financed in riskier ways: more debt than equity; more short - term debt than long - term debt; more foreign - currency debt than local - currency debt; and more financing from fickle cross-border interbank flows.

«Many investors are looking for exposure to emerging markets, but do not have the risk appetite for emerging market equities or emerging market local - currency debt,» said Fijalkowski.

6 Moreover, 15 years ago only a handful of countries were in a position to issue local currency debt, and their average credit rating was BBB +.

Based on par amount outstanding of J.P. Morgan EMBI Global (USD - denominated debt) and J.P. Morgan GBI - EM (local currency debt) indexes.

Emerging Markets Debt Opportunities Fund (EELDX) 3 Years Out of 18 Emerging Markets Local Currency Debt Funds

Position: none, though I own TIPS, realizing that they are only second best to developed market foreign currency debt, and the US Labor department controls the CPI calculation...

An emerging markets bond fund that integrates sovereign hard currency debt, local currency debt, emerging market corporate debt, and emerging market currency rates within an actively managed, strategic asset - allocation framework.