{"id":578650,"date":"2023-01-09T03:57:13","date_gmt":"2023-01-09T03:57:13","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/09\/ringing-in-the-new-year-with-a-bond-binge-em-bulls-are-waiting-for-a-fed-reversal\/"},"modified":"2023-01-09T03:57:13","modified_gmt":"2023-01-09T03:57:13","slug":"ringing-in-the-new-year-with-a-bond-binge-em-bulls-are-waiting-for-a-fed-reversal","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/09\/ringing-in-the-new-year-with-a-bond-binge-em-bulls-are-waiting-for-a-fed-reversal\/","title":{"rendered":"Ringing in the new year with a bond binge + EM bulls are waiting for a Fed reversal"},"content":{"rendered":"

<\/a> Does 2023 bode a comeback for bonds? <\/strong>Global borrowers issued USD 150 bn worth of fresh bonds in just four days at the start of January \u2014 suggesting newfound optimism in the bond markets after they recorded a 16.3% loss last year, Bloomberg<\/a> writes. Hong Kong made its biggest ever green bond issuance at USD 5.8 bn, Mexico sold USD 4 bn in bonds, and USD 53 bn was sold in 48 hours in a \u201cbond-sale binge\u201d in the US corporate market. With markets set to remain volatile as the year progresses, analysts expect to continue to see big swings in market liquidity as borrowers rush to raise finance on days where the chances of any surprises coming to spook investors seem lower.<\/p>\n

EM bulls are waiting for a sign from the Fed: <\/strong>Key emerging-market equities, currencies, and bonds indices continued to rise last week as some investors anticipate a broad rally in EM assets in 2023, Bloomberg<\/a> reports. Chances are good in 2023 for a recovery in the Chinese economy that could spur a broader boom in EM assets, the business newswire says \u2014 but much will depend on if and when the US Federal Reserve will turn the tide<\/a> on a tightening cycle that has brought economic pain for many EMs. Bulls will need patience and a \u201ctactical and selective\u201d approach if they want to ride out short-term volatility, one EM economist at Wells Fargo Securities tells the newswire.<\/p>\n

Mubadala + Alpha Dhabi latest to enter the private credit space: <\/strong>Abu Dhabi wealth fund Mubadala and Alpha Dhabi Holding, one of the UAE\u2019s biggest companies, have formed a joint venture that will lend some USD 2..5 bn in private credit over the next five years, according to a joint statement<\/a>. Mubadala will \u201cleverage its partnership\u201d with private equity giant Apollo to find borrowers for the platform, in which Mubadala will own 80% and Alpha Dhabi 20%.<\/p>\n

REFRESHER- <\/strong>The global market share for private credit funds is increasing as they eat into banks\u2019 market share amid an high interest rate environment. Our friends at Chimera Capital in November entered<\/a> private credit with the launch of their USD 2 bn global fund with US alternative asset manager Alpha Wave Global.<\/p>\n

ALSO WORTH NOTING-<\/strong><\/p>\n