Friday 27th March 2015
NEWS TICKER, FRIDAY MARCH 27th 2015: Moody's says that The Link Real Estate Investment Trust's (A2 stable) acquisition of the mid-end positioned EC Mall in Beijing is credit negative, but has no immediate impact on its ratings. The acquisition, while immediate EBITDA and cash flow accretive, will reduce liquidity and increase debt leverage, as measured by gross debt to EBITDA. This is Link's first venture into the Chinese retail market. Yesterday, Link announced that it will acquire EC Mall for a total consideration of RMB2.5bn. The transaction will close on April 1st - The outcomes of the March 19th-20th spring European Council will be debated with European Council President Donald Tusk and European Commission President Jean-Claude Juncker at 15.00 today. Agenda items at the Council include Energy Union, the EU’s economic situation, its eastern partnership, and the situation in Libya - -- The sharp fall in oil prices will have a positive, yet limited credit impact for most European asset-backed securities (ABS) collateralised by loans granted to small and medium-sized enterprises (SMEs), says Moody's Investors Service in a sector comment published today. "If we balance both direct and indirect exposures to the oil and gas sectors, which affect performance the most, the net effect is slightly positive," says Monica Curti, a Moody's Vice President and author of the report. The rating agency observes that securitised portfolios have very low direct exposure to the oil and gas industries, for which lower prices are credit negative. For pools where borrowers are indirectly exposed to these sectors, Moody’s says the oil price decline will be slightly positive in terms of credit performance due to its strong positive effect on sectors such as airlines, shipping and packaged food, which represent up to 12% of some European ABS SME portfolios. However, for over 60% of the ABS SME transactions that Moody's studied, the net effect of oil price exposures is negligible. In addition, the general positive effect of the oil price decline on economic growth will be mild. "While sustained lower oil prices would significantly boost economic growth in principle, their positive effect will be mild for European SMEs because of the euro area's low dependency on oil and the fact that oil prices have fallen in a subdued economy," says Ariel Weil, a Moody's vice president and co-author of the report - The Straits Times Index (STI) ended +5.76 points higher or +0.17% to 3419.02, taking the year-to-date performance to +1.60%. The FTSE ST Mid Cap Index gained +0.38% while the FTSE ST Small Cap Index gained +0.48%. The top active stocks were SingTel (+0.70%), UOB (+0.61%), DBS (-0.05%), Keppel Corp (+1.13%) and OCBC Bank (+0.29%). Outperforming sectors today were represented by the FTSE ST Utilities Index (+3.48%). The two biggest stocks of the FTSE ST Utilities Index are United Envirotech (+0.31%) and Hyflux (+1.14%). The underperforming sector was the FTSE ST Real Estate Holding and Development Index, which declined -0.33% with Hongkong Land Holdings’ share price declining -0.94% and Global Logistic Properties’ share price gaining +0.78%. – Reuters reports that Chicago-based CME Group had planned to debut an EU wheat-futures contract by the end of next month, but it has yet to reach agreements with local companies to guarantee sufficient deliverable capacity. Eric Hasham, senior director, CME Group is quoted as saying: "If for whatever reasons the parties that we are speaking to decide not to move forward ... we would not be making the contract available.” - Nigeria and Ivory Coast are looking to emulate Senegal's successful move into the market for Islamic bonds or sukuk, the head of the Islamic Corporation for the Development of the Private Sector (ICD) has said. Earlier this month the ICD, which is the private sector arm of the Jeddah-based Islamic Development Bank Group, signed an agreement with the African Export-Import Bank (Afreximbank) to cooperate in the development of the private sector in ICD member countries in Africa - Turkey received foreign direct investment worth $1.8bn in January, according to Turkey’s Economy Ministry. The energy sector was the largest recipient of international capital during the month with $735m worth of inflows. Foreign investment to the county increased by 44% in the first month of 2015 compared with the same month in the previous year, said the statement. Around a quarter of the investment came from European countries, a significant decrease (-76%) compared with January 2014. More than $420m in investments came from Asian countries, such as China and Malaysia. There were 175 new, foreign-funded companies established in the first month of the year, down from 410 in the same month of 2014. A total of 41,699 companies were operating in Turkey with international capital as of January 2015, with 24,612 of them operating in Turkey’s largest province, Istanbul, the ministry said. The report also said that of the total number of foreign-funded companies in Turkey, 6,054 were German-funded and 2,774 were financed by the United Kingdom. Turkey received a total of $12.4bn in foreign direct investment in 2014, down 1.7% compared with 2013.

SSgA expands LDI range of funds

Tuesday, 24 April 2012
SSgA expands LDI range of funds State Street Global Advisors (SSgA), the investment management business of State Street Corporation (NYSE:STT), has enhanced its liability driven investing (LDI) strategies with the launch of 10 leveraged gilt funds. The new derivative-based range includes Fixed Gilt Funds with set maturity dates of 2020, 2030, 2040, 2049 and 2060, and Index Linked Gilt Funds set to mature in 2022, 2032, 2042, 2055 and 2062. SSgA also offers physical-based Single Stock Gilt Funds in its LDI range. These include Fixed Gilt Funds with maturity dates of December 2049, December 2055 and January 2060; and Index Linked Gilt Funds with maturity dates of November in the years 2027, 2032, 2037, 2042, 2047, 2050, 2055 and 2062. http://www.ftseglobalmarkets.com/

State Street Global Advisors (SSgA), the investment management business of State Street Corporation (NYSE:STT), has enhanced its liability driven investing (LDI) strategies with the launch of 10 leveraged gilt funds. The new derivative-based range includes Fixed Gilt Funds with set maturity dates of 2020, 2030, 2040, 2049 and 2060, and Index Linked Gilt Funds set to mature in 2022, 2032, 2042, 2055 and 2062. SSgA also offers physical-based Single Stock Gilt Funds in its LDI range. These include Fixed Gilt Funds with maturity dates of December 2049, December 2055 and January 2060; and Index Linked Gilt Funds with maturity dates of November in the years 2027, 2032, 2037, 2042, 2047, 2050, 2055 and 2062.

The new funds funds are aimed at offering pension schemes and institutional investors a way to extend inflation- and interest-rate protection in their liability-matching portfolios. The leveraged nature of these funds help provide further flexibility for schemes by allowing a smaller initial investment, thereby freeing capital to allocate according to a portfolio’s growth objectives.“These new funds are part of a broader product build-out of our LDI offering. Combined with the existing set of physical bond strategies, including single stock bond funds, SSgA now offers pensions schemes and institutional investors exceptional breadth for extending inflation- and interest-rate protection on their liability-matching portfolios. The leveraged funds provide extra flexibility for schemes to focus on building asset growth in line with their overall investment objectives,” says Susan Raynes, head of the UK, Middle East and Africa at SSgA.

The Single Stock and Leveraged Gilt funds can be used in tailored combinations to suit the objectives and risk tolerances of a scheme. They complement SSgA’s conventional bond index funds, enabling investors to structure stable and cost-effective hedging portfolios.



 

Related News

Related Articles

Related Blogs

Related Videos

Tweets by @DataLend

DataLend is a global securities finance market data provider covering 42,000+ unique securities globally with a total on-loan value of more than $1.8 trillion.

What do our tweets mean? See: http://bit.ly/18YlGjP