{"id":14288,"date":"2012-09-05T15:46:47","date_gmt":"2012-09-05T13:46:47","guid":{"rendered":"http:\/\/www.myza.co.za\/09\/diversity-hunters-get-more-emerging-debt-choice\/"},"modified":"2012-09-05T15:46:47","modified_gmt":"2012-09-05T13:46:47","slug":"diversity-hunters-get-more-emerging-debt-choice","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/diversity-hunters-get-more-emerging-debt-choice\/","title":{"rendered":"Diversity-hunters get more emerging debt choice"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>By Carolyn Cohn<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">LONDON, Sept 5<\/span> (Reuters) &#8211; International investors who have<br \/>\nlong complained of limited choice in emerging market assets are<br \/>\nnow finding that local currency debt markets from Nigeria to<br \/>\nChina are becoming more accessible.<\/p>\n<p><span><\/span><\/p>\n<p>The local debt of South Africa and Nigeria is expected next<br \/>\nmonth to enter indices tracked by global and emerging market<br \/>\ndebt investors, making it available to a wider pool of buyers,<br \/>\nwhile Russia and China are opening up their local debt markets<br \/>\nto foreign investors.<\/p>\n<p><span><\/span><\/p>\n<p>Foreign holdings of local government bonds have nearly<br \/>\ntripled in Mexico and nearly doubled in South Africa since 2007,<br \/>\naccording to JP Morgan, and these index and regulatory changes<br \/>\nare likely to increase foreign holdings further.<\/p>\n<p><span><\/span><\/p>\n<p>Core debt markets in the euro zone, United States and Japan<br \/>\nare offering tiny or even negative yields, helping emerging<br \/>\nmarket bond funds to post net inflows of $30 billion this year,<br \/>\naccording to Boston-based fund tracker EPFR.<\/p>\n<p><span><\/span><\/p>\n<p>South Africa will join Citi&#8217;s World Government Bond Index,<br \/>\nbenchmarked by $2 trillion in international funds, in October,<br \/>\nwhen Nigeria is expected to join JP Morgan&#8217;s local emerging<br \/>\nGBI-EM series, benchmarked by around $170 billion of assets.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;There is clear demand to own these assets, for<br \/>\ndiversification and for the potential to pick up higher yields,&#8221;<br \/>\nsaid Luis Costa, emerging markets strategist at Citi.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;Nigerian T-bills trade at 14 percent, that&#8217;s a fantastic<br \/>\npick-up in rates over the core.&#8221;<\/p>\n<p><span><\/span><\/p>\n<p>Citi estimates up to $7.5 billion will flow to South<br \/>\nAfrica&#8217;s bond market over the next couple of years due to its<br \/>\ninclusion in the WGBI index, whose 23 existing countries include<br \/>\nemerging markets Mexico, Malaysia and Poland.<br \/>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Carolyn Cohn LONDON, Sept 5 (Reuters) &#8211; International investors who have long complained of limited choice in emerging market assets are now finding that local currency debt markets from Nigeria to China are becoming more accessible. The local debt of South Africa and Nigeria is expected next month to enter indices tracked by global [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-14288","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/14288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=14288"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/14288\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=14288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=14288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=14288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}