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bond categories

Panoramic Weekly: Ignoring Trump

Most global fixed income asset classes gained over the past five trading days, despite an escalation of the ongoing US-China trade war and the inclusion of new tariffs between the world’s two largest economies. Reduced trade, however, may bring more harm than good to the US economy, as levies usually generate inflation and, therefore, higher rates. Indeed, the benchmark US 10-year Treasury yiel…

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State-owned corporate bonds: there is no such thing as an implicit guarantee

A couple of weeks ago, state-owned International Bank of Azerbaijan (IBA) shocked its bondholders by announcing a surprise restructuring. The bank’s capital ratio turned negative at year-end 2016 due to large currency losses as a result of the depreciation of local-currency Manat (AZN). The International Bank of Azerbaijan bonds (IBAZAZ) 5.625% 2019 bonds were trading above par and dropped by 1…

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