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☆ We're 'quite cheerful' and positive on China, says portfolio manager
▼ + stars: | 2023-02-16 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're 'quite cheerful' and positive on China, says portfolio managerMary Nicola of PineBridge Investments says as the rest of the world slows down, China is "picking up," and the company has been shifting into emerging markets.

☆ Renewed U.S. junk bond rally ignites hope for more stuck buyout debt
▼ + stars: | 2023-02-03 | by ( Matt Tracy | ) www.reuters.com time to read: +3 min

This exercise now has more impetus on expectations that junk bond prices will continue to rally in the wake of Powell's comments, which raised hopes of slowing rate hikes and a so-called economic soft landing. Junk bond spreads on average tightened 37 basis points on Wednesday, the day of Powell's remarks, from a day earlier, according to ICE BAML data. This is around the level in September when banks sold only about half of the total $15 billion of debt through a U.S. dollar bond, leveraged loan and a Euro-denominated loan. Reuters could not confirm the exact amount sold in these sales and balance of LBO debt still left with banks. Banks could consider selling larger parcels of LBO debt in the primary bond markets where there has been a surge in new issue supply, said the sources.

SINGAPORE, Jan 20 (Reuters) - Japan's central bank appears to have scored an interim win in its long-drawn battle with bond bears. The Bank of Japan's (BOJ) policy meeting this week was, at first glance, a damp squib for excited markets. It maintained its cap on 10-year yields, defying market expectations for change, and modified a funds-supply operation such that it offers more money for longer tenors to banks. After Wednesday's decision to retain ultra-low rates, 10-year bond yields, which had been testing the BOJ's 0.5% cap for a week, settled below 0.4%, suggesting many speculators were closing positions. "Most people are concerned about market liquidity in the bond market," a senior trader at a global bank in Asia told Reuters.

REUTERS/Francis KokorokoLONDON/ACCRA, Jan 10 (Reuters) - Ghana requested on Tuesday to restructure its bilateral debt under the common framework platform supported by the Group of 20 major economies, a source familiar with the situation told Reuters. Ghana's debt restructuring under the common framework aims to include non-Paris club members, such as China in debt relief talks. Reuters reported first on Thursday that Ghana was seeking debt treatment under the G20 programme. Some bondholders said Ghana opting to go down the common framework route put the prospect of a swift resolution further out of reach. "With the common framework and the poor track record on the timeline for that, it just makes things more uncertain," said Anders Faergemann, portfolio managers at PineBridge Investments.

Reuters Graphics3/ RE-EMERGING MARKETSWhisper it, but the emerging markets (EM) bulls are back after 2022 delivered some of the biggest losses on record. Credit Suisse particularly likes hard currency debt and DoubleLine's Jeffrey Gundlach, AKA the "bond king", has EM stocks as his top pick. Economists polled by Reuters expect headline U.S. inflation to decelerate to 3.1% by the end of 2023. Valentine Ainouz, fixed income strategist at the Amundi Institute, predicts the 10-year U.S. Treasury yield will end 2023 at 3.5% from around 3.88% currently. Reuters Graphics5/ EQUITIES: SELL NOW, BUY LATEREquity investors hope a V-shaped year for the global economy will see stocks end it comfortably higher.

☆ Asian shares slip as COVID surge in China makes investors uneasy
▼ + stars: | 2022-12-29 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

SINGAPORE, Dec 29 (Reuters) - Asian equities weakened slightly on Thursday as soaring COVID cases in China unsettled investors and cast doubt over chances of a swift recovery for the world's second biggest economy after the relaxation of stringent COVID curbs. Around half the passengers on two flights from China to Milan's main airport, Malpensa, tested positive for COVID on Wednesday. China shares (.SSEC) fell 0.3%, while Hong Kong's stock market (.HSI) slid 1%. State Street's Investor Confidence Index, which analyses buying and selling patterns of institutional investors, fell to 75.9 in December, the lowest since the pandemic began three years ago. The yield on 10-year Treasury notes was down 2.2 basis points to 3.864%, not far off six-week high of 3.89%.

The same funds averaged a decline of 0.58% in 2021, according to the HSBC data seen by Reuters. HSBC follows eight funds which take long and short positions in Chinese equities. This year, three hit HSBC's global list of the bottom 20 hedge fund performances for the week ending Nov. 4. The $1.9 billion Golden China fund from Greenwoods Asset Management, was down 45% for the year to Oct. 31; the $152 million Zeal China Fund from Zeal Asset Management, was down 38% for the same period; and the $156 million Telligent Greater China fund from Telligent Capital down almost 40%. HFR, another company which tracks hedge fund performance but does not disclose the constituents of its indices, said its index of Chinese hedge funds was down 27% so far this year.

These same funds averaged a 0.58% decline in 2021, according to the HSBC data seen by Reuters. HSBC follows eight funds which take long and short positions in Chinese equities. This year, three hit HSBC's global list of the bottom 20 hedge fund performances for the week ending Nov. 4. Net selling of Chinese equities by international active funds totalled around $30 billion over the past year and global hedge fund allocations in Chinese equities have declined from 15% at the 2020 peak to 8% now, Goldman Sachs estimates. HFR, another company which tracks hedge fund performance but does not disclose the constituents of its indices, said its index of Chinese hedge funds was down 27% so far this year.

☆ PineBridge, Man Group bet on China as reopening hopes fuel markets
▼ + stars: | 2022-11-04 | by ( Joice Alves | Karin Strohecker | ) www.reuters.com time to read: +4 min

LONDON (Reuters) -Asset manager PineBridge Investments’ multi asset team has sharply raised its China equity exposure and rival Man Group expects to expand its presence in the country with expectations that strict COVID rules will be eased. “Europe is going into recession now, the U.S., maybe, sometime next year, but China’s already had a recession ... The next leg is up for Chinese equities, it’s a question of when, and the main driver would be the reopening,” Redha said. China’s economy rebounded faster than anticipated in the third quarter though the revival was challenged by COVID-19 curbs, a prolonged property slump and global recession risks. However, a foreign ministry spokesman later said he was not aware of the report, calling China’s COVID policies consistent and clear.

☆ PineBridge ups China equities exposure to record high on reopening hopes
▼ + stars: | 2022-11-04 | by ( Joice Alves | ) www.reuters.com time to read: +2 min

LONDON, Nov 4 (Reuters) - PineBridge Investments has increased its exposure to Chinese equities to a record high on hopes China's strict COVID restrictions will be lifted and boost the market, the U.S. asset manager told Reuters on Friday. "We have more China equities that we've probably ever had before in our portfolio in anticipation of this improvement ahead," said Hani Redha, global multi-asset portfolio manager at PineBridge. The asset manager - which has $133.4 billion in asset under management, of which $15 billion is in global equities - is currently underweight in European and U.S. stocks. The next leg is up for Chinese equities, it's a question of when, and the main driver would be the reopening," Redha said. However, a foreign ministry spokesman later said he was not aware of the report and that China's COVID policies were consistent and clear.

REUTERS/StaffLONDON, Oct 25 (Reuters) - European stocks rose in early trading on Tuesday, as investors took confidence from signs that the U.S. Federal Reserve could slow down its rate increases, although concern about China's economy still weighed on Asian markets. European stock indexes opened higher, with the STOXX 600 up 0.4% at 0809 GMT (.STOXX). Economists polled by Reuters said that the central bank should not pause until inflation falls to around half its current level. Some better-than-expected earnings results also supported European stock market sentiment, with Swiss bank UBS (UBSG.S) among those beating market expectations. The European Central Bank meets on Thursday and is set to raise rates by 75 basis points.

REUTERS/Kim Kyung-Hoon/File PhotoNEW YORK/LONDON, Sept 25 (Reuters) - Global investors are preparing for more market mayhem after a monumental week that whipsawed asset prices around the world, as central banks and governments ramped up their fight against inflation. "It's hard to know what will break where, and when," said Mike Kelly, head of multi-asset at PineBridge Investments (US). "Currency exchange rates ... are now violent in their moves," said David Kotok, chairman and chief investment officer at Cumberland Advisors. But the murky outlook meant that they were still not cheap enough for some investors. "We are of the view that markets are still massively underestimating the global economic growth hit that is coming," he said.

REUTERS/Kim Kyung-Hoon/File PhotoNEW YORK/LONDON, Sept 25 (Reuters) - Global investors are preparing for more market mayhem after a monumental week that whipsawed asset prices around the world, as central banks and governments ramped up their fight against inflation. "It's hard to know what will break where, and when," said Mike Kelly, head of multi-asset at PineBridge Investments (US). "Currency exchange rates ... are now violent in their moves," said David Kotok, chairman and chief investment officer at Cumberland Advisors. The fallout from the hectic week exacerbated trends for stocks and bonds that have been in place all year, pushing down prices for both asset classes. "We are of the view that markets are still massively underestimating the global economic growth hit that is coming," he said.

Finance minister Kwasi Kwarteng's plans will require an extra 72 billion pounds ($79 billion) of government borrowing over the next six months alone, and - a particular concern for investors - cement permanent tax cuts costing 45 billion pounds a year. But to bond investors, they bring the prospect of more persistent inflationary pressures - at a time when inflation is already near a 40-year high - as well as tighter Bank of England (BoE) policy. Government borrowing is likely to total 218 billion pounds this financial year and 229 billion pounds in 2023/24, Citi predicted, and it expects benchmark 10-year British government bond yields to rise to 4.25%. Adding to the pressure, on Thursday the BoE confirmed it planned to reduce its own 838 billion pounds of gilt holdings by 80 billion pounds over the coming year. "That is a strong indication that domestic and overseas investors are losing confidence in the UK's inflation-fighting credibility," he said.

☆ Analysis: Overstretched U.S. companies feel pinch of higher borrowing costs
▼ + stars: | 2022-09-20 | by ( Matt Tracy | ) www.reuters.com time to read: +5 min

Sharpie markers owned by Newell Brands are seen for sale in a store in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew KellySept 20 (Reuters) - When U.S. consumer products company Newell Brands Inc (NWL.O) refinanced $1.1 billion worth of bonds earlier this month, it saw its borrowing costs jump by more than half. Register now for FREE unlimited access to Reuters.com RegisterA Newell Brands spokesperson did not respond to a request for comment. But most companies with junk-rated debt have significant exposure to higher interest rates. HIGHER BANKRUPTCY RISKThe burden of higher interest payments is expected to lead to more companies filing for bankruptcies.

REUTERS/Brendan McDermid/File PhotoSept 19 (Reuters) - Just months ago, investors worried the Federal Reserve was not fighting inflation aggressively enough. Several jumbo rate hikes later, some now fear the Fed will plunge the economy into recession by tightening monetary policy too quickly. Investors are also pricing in meatier rate hikes down the road, with the terminal rate for U.S. fed funds now at 4.4%. read moreDoubleLine’s Chief Executive Jeffrey Gundlach, who had in June criticized the Fed for moving too slowly, told CNBC last week he was worried the Fed might hike rates too far. Some investors think the economy may be resilient enough to withstand a more aggressive Fed.

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