The cost is higher and the maturity is significantly shorter. In theory, then, Indian debt is an asset class at least worth looking at. He sees strong macroeconomic trends, but perhaps not as strong as India bulls make out, with the rupee arguably vulnerable to weakness if there is a dollar rebound. EUR to million. Attempts to improve transparency of research costs have unintentionally hit performance.
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Bond sales by companies from Russia and other ex-Soviet states amount to just 1 percent of emerging corporate debt issuance so far in , a year low. In , they made up almost half of emerging market corporate bond issuance. Russia's pivot eastwards, championed by President Vladimir Putin and intended to help fill the void left by Western investors, is yet to result in significant corporate bond-buying by Asian investors.
But Denis Shulakov, head of capital markets at Gazprombank, said Chinese investors could also step up to the plate as trade links between Moscow and Beijing grow. Analysts say investor attitudes to Russian debt markedly improved in February and March with interest coming from high-yield funds as well as traditional emerging market investors.
After an extended absence of primary placements, there will be at least several new Eurobond issues from the summer," said Alexey Bulgakov, senior credit analyst at Sberbank CIB. The index contains bonds of sanctioned as well as non-sanctioned firms.
That may not be the case if the ceasefire breaks down. The next hurdle will be pricing. A company like Gazprom could face a premium of around 50 bps over similarly-rated and similar-maturity issues elsewhere in emerging markets, Bulgakov said.
For those with a single B rating the premium could be bps. At the time it paid a premium of around 40 bps over existing bonds maturing in Since then, yields have fallen bps on its short-dated bonds, partly reflecting growing confidence the company will escape sanctions.
In Moscow, the government pledged to provide Rusal with short-term liquidity and offer other assistance while it also considered hitting back by looking at US goods or goods produced in Russia by US companies. That included aircraft, machinery, pharmaceutical and chemical products. The exclusion will be done as part of the end-of-month rebalancing of the indexes, it added. As of Friday, April 6, Rusal has a weight of 0. Aluminium prices extended their rally yesterday to a sixth straight session, hitting an week peak, amid persistent worry about shortages.
Global output this year is estimated at 65mn tonnes. Although the supply pipeline of the metal, more than two-fifths of which is sourced in Russia, has not been directly hit by the sanctions, the market has been rattled by the inclusion of Deripaska on the blacklist.
Don't have an account? A logo is displayed outside the entrance to the United Company Rusal headquarters in Moscow file.
International financial groups took action yesterday to distance themselves from the shares, bonds and metal of Russian aluminium giant after the United States imposed sanctions on the company.