Martin Bercetche’s Post

Despite initial concerns about the ability of countries with low credit ratings to access bond markets, the first quarter of the year witnessed a record issuance of hard-currency bonds by emerging-market sovereigns. Notably, countries such as Côte d’Ivoire, Bahrain, Benin, and Kenya have successfully tapped into these markets, indicating a renewed avenue for liquidity. However, the high coupon rates accompanying these bonds raise apprehensions among private-sector bondholders, who fear a potential surge in sovereign debt restructurings. While absolute yields exceeding 10% may seem alarming, historical data and ongoing negotiations, such as Zambia's debt restructuring deal, provide some optimism regarding the resolution of sovereign defaults. Despite the complexity and idiosyncrasies inherent in such negotiations, the reopening of markets and additional support from institutions like the IMF signal a promising trajectory for lower-rated sovereign borrowers in emerging markets. This resurgence not only underscores the resilience of these markets but also invites further examination of the intricacies of sovereign-debt contracts and restructuring mechanisms. Source - https://lnkd.in/e_92SZNs #Finance #SovereignBonds #EmergingMarkets #DebtRestructuring

“You need consistent policies to attract foreign capital, JP Morgan tells Nigeria” - Guardian.ng In the words of JP Morgan’s CEO, Mr Jamie Dimon, he believes that JP Morgan is willing to triple their investment in Nigeria, and even other private capital companies, but for this to happen, there must have been policies and regulations in place to ensure absolute security of the investor’s money. Just like we’ve always preached, it’s important that countries of the world, especially African countries place huge emphasis on making policies that totally have lasting positive effects on the economy. Undoubtedly, policies are backbones of a nation. These are what govern and guide the economy and commonwealth of the nation. Making policies that contributes to the development of the country will increase the trust that foreign investors have in our country, and at the same time attract more investors. With enabling policies and regulations in place, investors will be rest assured that their money is safe whereever they opt to invest in and that the country is responsible, transparent and accountable. Meanwhile, as much as policies are developed, the government and regulatory bodies must ensure strict compliance with these policies and sanctions must be in place to penalize any party that is found wanting for noncompliance. Nigeria as a nation needs to make laws and regulations that give room for foreign investment and that make investing in Nigeria become easy. God Bless Nigeria 🇳🇬. Link to the full news: https://lnkd.in/eUDvqeDZ #Nigeria #policies #NESG #Economicsummit #regulations

Imagine you’re standing in a busy market, where every stall is shouting its wares and prices are constantly changing. It’s chaotic, but exciting—each deal struck could transform someone’s fortunes. Now, picture this market on a much larger scale: instead of fruit and spices, it’s trillions of dollars in investments, and instead of shouting merchants, you have nations, banks, and corporations making moves. Welcome to the GCC debt capital markets. GCC debt capital markets are expected to hit a massive $1 trillion milestone by 2025, according to Fitch Ratings. Think of it as the region reaching a new level of financial maturity. Sovereign issuances—where governments raise funds by issuing bonds—are on the rise, especially as oil prices are projected to dip to $70 per barrel in 2025 and $65 in 2026. These markets are also being powered by ambitious government projects, fiscal deficits, and a growing appetite for diversification in funding sources. 40% of this debt is tied to sukuk—Islamic bonds. The GCC is already the largest issuer of sukuk globally, and Fitch notes that 81% of GCC US dollar sukuk are investment-grade, with no defaults. That’s a remarkable track record, especially in an era of global economic uncertainties. But it’s not all smooth sailing. Challenges like the complexities of Sharia compliance and potential geopolitical instability in the region could impact this growth. On the other side, regulatory reforms and GCC fund passporting could unlock fresh opportunities, making it easier for investors to access and benefit from these markets. So why does this matter? Because these developments are shaping not just the GCC’s financial landscape but its entire economic future. As the region moves toward diversification and sustainability goals, these markets are becoming the backbone of transformation. #GCCFinance #DebtCapitalMarkets #SukukInnovation #IslamicFinance #EmergingMarkets #EconomicDiversification #SustainableInvestments

China has rejected IMF proposal (International Monetary Fund) to use nearly $1 trillion of direct China government financing to complete unfinished housing projects in China, due to moral hazards & bail-out expectations.  Read - https://lnkd.in/g2qD93Vr follow Caproasia | Driving the future of Asia China has rejected IMF proposal (International Monetary Fund) to use nearly $1 trillion of direct China government financing to complete unfinished housing projects in China, due to moral hazards & bail-out expectations.  

🇰🇪 Kenyan Bonds: A Smart Investment in 2025?* With the financial markets facing global uncertainty, Kenyan government bonds offer investors a stable and secure way to preserve capital and earn attractive returns. 🔎 Why should investors consider Kenyan bonds? 1️⃣ Attractive Yields Kenyan bonds offer higher interest rates compared to many global markets. Treasury bonds currently yield between 10% and 15%, depending on the tenure — a great option for investors seeking consistent returns. 2️⃣ Government Backing These bonds are issued and guaranteed by the Kenyan government, making them one of the safest local investment options for both retail and institutional investors. 3️⃣ Accessible to Retail Investors Did you know you can start investing in government bonds with as little as Ksh 50,000? Through platforms like CBK’s Treasury Mobile Direct (TMD), even individual investors can participate. 4️⃣ Tax-Free Options Certain infrastructure bonds are tax-exempt, which means you keep more of your returns compared to other investments. 💡 What’s the catch? Bond prices can be affected by interest rate changes and currency risks, especially for foreign investors. However, for long-term investors, holding bonds to maturity ensures a stable return. Are you looking for a low-risk, high-return option in the Kenyan market? Let's talk about how to get started with bonds. #KenyanBonds #TreasuryBonds #FixedIncome #InvestmentOpportunities #FinancialMarketsKenya --- This post highlights Kenyan bonds as a practical investment option while encouraging engagement with your network.

From Investment IQ. Emerging market sovereigns that have restructured their debt present a new set of opportunities for fixed income investors. Countries like Zambia, Ghana, and Sri Lanka have posted strong returns following recent restructurings, with innovative bond features tied to economic performance. Vanguard 🔗 Read the full article on Investment IQ: https://incm.pub/4fMgPsY #investing #assetmanagement #wealthmanagement #finance

China's Trust Assets Value Grows to Record USD3.7 Trillion at End of Second Quarter

Standard Chartered Bank has expanded its foreign currency investment options for Kenyan investors, offering a broader range of opportunities to diversify portfolios beyond the local market. This move addresses the growing demand for international investment, allowing investors to tap into the stability and returns of foreign currencies. New offerings include USD Money Market Funds, USD Corporate Bonds, USD Government Bonds, and Signature CIO Funds, providing flexibility and choice for both individual and corporate investors. Among the new options, the USD Money Market Fund stands out with a low entry point, requiring just a $1,000 lump sum or $100 monthly top-ups. For those seeking larger investments, USD Corporate and Government Bonds start at $50,000. Mutual Funds and Signature CIO Funds offer more diversified portfolios with minimum investments of $1,000, making these products accessible to a wide range of investors. Standard Chartered’s portfolio also maintains its focus on sustainability, continuing to offer ESG investment options such as Green Bonds and offshore ESG mutual funds. This allows investors to align their financial goals with responsible investment principles while benefiting from the expertise of professional portfolio managers. As financial literacy grows in Kenya, more investors are looking to international markets for diversification and stable returns. Standard Chartered’s enhanced offerings come at the right time, giving Kenyan investors access to global opportunities with the convenience of professional management, liquidity, and regular portfolio reviews. #ForeignCurrencyInvestments #Diversification #USDInvestments #KenyaInvestments #ESGInvesting #FinancialLiteracy #MoneyMarketFunds #CorporateBonds #GovernmentBonds #SignatureFunds #InternationalExposure #WealthManagement https://zurl.co/gbKD

The International Monetary Fund has assessed that has been “sufficiently strong progress on the debt restructuring” for a review of Sri Lanka’s program by its board on June 12, an official said. “…[T]he authorities have been holding extensive discussions with external official creditors regarding an MOU with the official creditor committee and the final agreements with the Export Import Bank of China,” IMF Communication Director Julie Kozack told reporters in Washington. “Discussions with external bondholders continue with the aim of reaching agreements in principle soon. Negotiations with the China Development bank are also at an advanced stage. “There is a strong expectation that agreements with external commercial creditors consistent with program parameters will be reached soon. “So overall we assess that there has been sufficiently strong progress on the debt restructuring front.” #BusinessNews #SriLankanEconomy #thesrilankan

🌍 Capital goes to where it’s taken care of.” Jamie Dimon, CEO of JPMorganChase🏦 ⛰️At the Nigerian Economic Summit in Abuja, Jamie Dimon shared an exciting vision for investment in Africa🧭 💬 “We’re optimistic about Africa’s future.” With new offices opening in Kenya and Côte d'Ivoire, JPMorgan isn’t just talking, they’re investing 🌱 🔗 He also called on American businesses 🇺🇸 to get involved, highlighting Africa’s potential for sustainable growth 🌱, especially if policies can support clear and consistent regulations 📈 ☎️ This isn’t just talk, it’s a call to action 🚀. Investment is pouring into Africa from all corners, but Dimon believes the U.S. can play a bigger role in shaping a dynamic, prosperous future🧲 #AfricaInvests #FutureOfAfrica #JPMorganChase #CoteDIvoire #Kenya #InvestmentOpportunities #JamieDimon #NigerianEconomicSummit #EmergingMarkets #GlobalGrowth #SustainableInvestment #AfricaRising Kiendel Burritt, Hanna Leykun, Benjamin Kouakou, Hasan Khan, Aubrey Hruby, Fabio Sarao, Kamemba Kevin, Teddy Onserio, Oliver Game, Miguel Azevedo, Sheila Okiro, Rafik Nayed, Sumaya Aziz, Iranga Mukendi, Patrick Kouamé, Jectone Achieng, Eric De Moudt, Kim Kamarebe, Ivan Paul Emmanuel Tia, Marc Daubrey, Emily Ojoo-Massawa, Elie Aloko, Julia Conrad, Youssef Boumaiz, Aparna Shrivastava, Anja Koethe, Huw Dalkin, Tendai. E Kasinganeti, Michelle Lee, Ms. Wangechi Muriuki, Iba Fall Anthony S Mwithiga, MSCI, Terry Kinyua, Carol Annang, Bocar-Alpha Ba, Aidan Heavey, William Polen, Angelo Peter Elosia, MBKS.