atans1

A sign Euro will rise?

In Currencies on 28/12/2016 at 2:24 pm

“Emerging market companies are increasingly choosing to borrow in euros rather than dollars as the spread between the yield on 10-year US Treasuries and German Bunds has widened to its highest level since the fall of the Berlin Wall. In the first eight months of 2016, EM non-financial corporates issued $38.1bn of euro-denominated bonds and syndicated loans, surpassing the highest ever full-year total of $33.4bn in 2013, according to FT analysis of data from the Institute of International Finance encompassing 20 major emerging market countries.”

FT

I’m reminded of all those who borrowed in US$ and who are being taken to the cleaners. Nothing new. I think of all the M’sian corporates who borrowed in yen in the 70s and 89s before the Plaza Accord.

But then US and Japan didn’t have a Le Pen around wanting to make France Great Again.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: