New issue activity among emerging market financial and non-financial corporates surged to a near historical record in 2003, but its ability to maintain this ‘dizzy pace’ in the current year hinges critically on several positive external developments being replayed, according to a report by Standard & Poor’s. Even though global demand for emerging market bond issues has been extremely positive in first-quarter 2004, a number of recent adverse geopolitical events – the attempted assassination in Taiwan, presidential impeachment in South Korea, and renewed tension in the Middle East following the assassination of the Hamas leader – have already caused consternation. ‘Looking ahead, emerging market issuers will continue to take advantage of an attractive funding environment which is facilitated by central banks in key regions maintaining an accommodative stance,’ observed Diane Vazza, head of Standard & Poor’s Fixed Income Research Group.’ However, the sharp run up in commodity prices-whose trend is generally positively correlated with emerging market issuance – to unprecedented highs since 1990 magnifies the risk that gains may be more circumspect in the coming months. Any hiccups in the global growth outlook – especially in Europe where weakness is already manifest-or an unexpected acceleration in interest rates in the U.S. could impede capital flows to the emerging markets and constrain financing prospects, particularly for weaker rated borrowers,’ Vazza added.
A report by broking group Marsh examines the repercussions from the administration of the South Korean company, which filed for bankruptcy protection at the end of August.
Global research by C2FO suggests that smaller businesses are less concerned with the repercussions of Brexit and the upcoming US presidential election.
A squeeze on skilled talent means it now takes an average of seven weeks to fill open permanent roles in finance in the UK according to new research from financial services recruitment firm Robert Half.
Early-stage merger and acquisition deals in Asia-Pacific show nearly 10% year-on-year growth in recent months.