Investment Week (October 20)
“The UK’s credit rating has been downgraded by Moody’s amid a looming economic hit from the coronavirus pandemic and the forthcoming Brexit deadline.” The UK’s sovereign debt status dropped “one notch to Aa3, from Aa2,” with the ratings agency “noting that Britain’s growth has been meaningfully weaker than expected and is likely to remain so in the future.”
Tags: Aa3, Brexit, Coronavirus, Credit rating, Deadline, Debt, Downgraded, Economic hit, Looming, Moody's, Pandemic, Sovereign, UK
Institutional Investor (June 4)
Due to Brexit, “sovereign investors now consider the U.K. less attractive than they did a year ago and are instead favoring investments in Germany and India as part of a broader move to so-called safe haven markets.” The change in sentiment was identified through a survey of “sovereign wealth funds, state-owned pensions, and central banks polled by Invesco.”
Tags: Brexit, Central banks, Germany, India, Invesco, Investors, Pensions, Safe havens, Sentiment, Sovereign, U.K.
Financial Times (May 20)
“The plunge in yields on corporate and sovereign bonds in Europe and Asia — the value of bonds with a negative yield is nearly $10tn, according to Fitch — has sent investors racing into the US market.” This surging demand “has allowed companies to issue debt at lower yields, though US yields are still more attractive than in other parts of the world.”
Tags: Asia, Bonds, Corporate, Debt, Demand, Europe, Fitch, Investors, Negative yield, Plunge, Sovereign, U.S., Yields
Euromoney (August Issue)
“Mexico’s strategy of diversifying its investor base is succeeding… following the sovereign’s multi-tranche samurai transaction which was priced on July 15 and included a 20-year tenor,” the first of any Latin American country. The highly oversubscribed placement also marked “the first emerging market sovereign to place a 20-year bond in Japan’s domestic market since 2008.”
Tags: 20-year tenor, Diversification, Emerging market, Investor base, Japan, Latin America, Mexico, Oversubscribed, Placement, Samurai bonds, Sovereign, Strategy
Euromoney (June Issue)
Portugal successfully raised €3 billion through a 10-year sovereign issue. This “might or might not amount to a return to full market access, but it is certainly a positive development.” Portugal still has a way to go, though, with “progress on its economy and the state of its banks… equally crucial.”
Tags: Banks, Economy, Full market access, Portugal, Sovereign
