LONDON, Oct 14 (Reuters)Zambia’s bonds fell heavily on Wednesday as a escalating row between the government and the country’s private sector creditors fed fears of a ugly default by one of the world’s largest copper producers.

One of the country’s international bonds due to pay a $42.5 million coupon payment on Wednesday slumped over 3 cents on the dollar ZM105638671=, its biggest drop since March when the government first signalled it wanted to delay debt payments.

Zambia’s finance ministry had issued a statement late on Tuesday repeating a request made to creditors last month for a number of its debt payments to be defered until April.

Creditors had rejected that request, however, saying the country had not laid out how it would get its debts under control again, or discussed the issues with them.

“Should Zambia fail to reach an agreement with its commercial creditors (including holders

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The Securities Exchange Board of India (SEBI) has done small investors a good turn by restricting their access to so-called innovative debt instruments such as perpetual non-cumulative preference shares and perpetual bonds (also known as AT-1 bonds). It has said that offers of such instruments should henceforth take the electronic book provider route, with participation restricted to Qualified Institutional Buyers (QIBs). The minimum ticket size for initial offers and secondary market trading in these bonds has been raised to ₹1 crore. Explicit disclosures will now be required on the perpetual character of these bonds, and the Point-of-Non-Viability (PONV) clause that allows the RBI to direct a troubled bank to completely write-off the principal value. These new requirements are a welcome attempt by SEBI to ward off YES Bank-like situations, where the write-off of AT-1 bonds as a part of the bank’s restructuring plan came as a rude shock to the

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Holders of NS&I Premium Bonds and Income Bonds are set to find it more difficult to make a passive income in the coming months. Low interest rates mean the returns on both products, as well as other bonds and cash savings accounts, are set to be extremely low.



A person holding onto a fan of twenty pound notes


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A person holding onto a fan of twenty pound notes

As such, buying UK dividend shares could be a sound move. Their high yields, growth potential, and low valuations may allow you to achieve a worthwhile income return. They may also deliver impressive capital returns in the coming years as the stock market recovers from the recent crash.

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Obtaining a worthwhile passive income

Making a passive income has been more difficult for many people since the global financial crisis. It prompted historically-low interest rates that sent the returns on bonds and cash savings accounts

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LONDON, Oct 9 (Reuters)Bond funds saw the second-largest weekly inflows ever of $25.9 billion, BofA said on Friday, as the market continues to price in a Democratic sweep in next month’s presidential election, which could mean even more fiscal stimulus.

“Blue wave election outcome (Democrats winning) has curiously flipped from consensus bear to bull catalyst in recent months,” the U.S. investment bank said.

Equity funds attracted $4.4 billion, mainly driven by U.S. equities, BofA said. Government and U.S. Treasury bond funds sucked in $3.8 billion, the largest inflows in 14 weeks, in the week to Oct. 7.

The bank also highlighted the likelihood of renewable energy stocks front-running a Democratic election sweep that was followed by a fiscal stimulus, pointing to one solar energy exchange traded fund’s stellar performance.

Invesco solar ETF TAN.P soared 255% from its March lows and has gained 42% in the last month alone.

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A pedestrian crosses a road in front of residential buildings in Beijing, China.

Qilai Shen | Bloomberg | Getty Images

SINGAPORE — Rising debt of Chinese property developers are in the spotlight again, as liquidity issues at top developer China Evergrande trigger investor concerns.

China’s property prices rebounded quickly as the economy reopened after the worst of the pandemic passed. Still, authorities are expected to officially rein in on borrowing costs of developers — outlining rules that cap the ratios of their debt in relation to their cash flows, assets and capital levels.

A leaked document last month regarding the cash flow of Evergrande, China’s second-largest developer by sales, has further highlighted concerns of the liquidity flows of Chinese developers.

Analysts warn it’s also raised the pressure on the developers’ ability to repay their debts in the bond markets going into 2021.

China’s property developers are among the biggest junk

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By Nelson Bocanegra

BOGOTA, Oct 5 (Reuters)Colombia plans to substitute some of its planned 2020 financing in dollars for a local debt emission of about 5 trillion pesos ($1.28 bln), three market sources with knowledge of the plan told Reuters on Monday.

The ministry will extend auctions of local so-called TES bonds until November in order to raise the projected funds.

TES paper is the country’s second top source of financing after tax collection.

The Finance Ministry plans to move ahead with pre-financing needs for 2021 and is considering an internal debt swap on the local market, the sources said.

The ministry did not have an immediate response to a request for comment.

In early September, director of public credit Cesar Arias told Reuters Colombia would carry out public debt swaps with multilateral banks to reduce its exchange rate exposure amid higher debt due to coronavirus and

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To get that lower-volatility return stream, you need to think differently

Interest rates have been in a progressive downward spiral for a very long time. Rates on the benchmark 10-year U.S. Treasury Bond peaked in the early 1980s.

For a 25-year old just starting to save money in an IRA account, this is, to coin a phrase from the Monty Python vernacular, “merely a flesh wound” to their retirement plan. Same thing for a 40-year old business owner just starting to fund their SEP or 401(k) plan.

But for someone who could potentially use that money within 10 years, much less 5, the impact of a recession, and the bear market in stocks that typically accompanies it? That is devastating!

For retirees, getting to higher rates won’t be much better

And, while bond investing has historically been considered the “safe, alter-ego” to the stock market,

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NEW YORK (Reuters) – Global equity markets surged and the dollar fell from two-month highs on Monday as investors moved into beaten-down sectors such as banks and travel on the heels of last week’s sharp sell-off.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 22, 2020. REUTERS/Staff

Asian shares gained, with Chinese shares boosted by data over the weekend showing China’s industrial firms grew for the fourth consecutive month in August.

“We’re seeing a bit of a relief rally,” said Jonathan Bell, chief investment officer at Stanhope Capital. “Things got oversold perhaps a little bit in the short term.”

“We saw quite a lot of exuberance in July and August, with prices particularly of tech stocks rising and that then has come off a little bit recently,” he said.

MSCI’s gauge of stocks across the globe .MIWD00000PUS gained 1.68% following broad

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a man talking on a cell phone: ETNs trade on exchanges like stocks, but actually work more like bonds. AP Photo/Richard Drew


© AP Photo/Richard Drew
ETNs trade on exchanges like stocks, but actually work more like bonds. AP Photo/Richard Drew

  • Exchange-traded notes (ETNs) are debt securities that track the performance of a financial asset or index and trade on stock exchanges. 
  • ETNs pay a lump sum when they mature, and investors make money if the underlying tracked asset has risen in value.
  • While they offer investors access to exotic sectors and strategies, ETNs have drawbacks, like illiquidity and credit risk.
  • Visit Insider’s Investing Reference library for more stories.

Many investors are likely familiar with the exchange-traded fund (ETF), a bundle of easily-traded securities ideally suited for portfolio diversification. But what is an exchange-traded note, or an ETN? Is it the same as an ETF?

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The short answer is that the two products are quite different. 

An ETF operates like a mutual fund, giving investors a tiny slice

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a man talking on a cell phone: ETNs trade on exchanges like stocks, but actually work more like bonds. AP Photo/Richard Drew


© AP Photo/Richard Drew
ETNs trade on exchanges like stocks, but actually work more like bonds. AP Photo/Richard Drew

  • Exchange-traded notes (ETNs) are debt securities that track the performance of a financial asset or index and trade on stock exchanges. 
  • ETNs pay a lump sum when they mature, and investors make money if the underlying tracked asset has risen in value.
  • While they offer investors access to exotic sectors and strategies, ETNs have drawbacks, like illiquidity and credit risk.
  • Visit Insider’s Investing Reference library for more stories.

Many investors are likely familiar with the exchange-traded fund (ETF), a bundle of easily-traded securities ideally suited for portfolio diversification. But what is an exchange-traded note, or an ETN? Is it the same as an ETF?

Loading...

Load Error

The short answer is that the two products are quite different. 

An ETF operates like a mutual fund, giving investors a tiny slice

Read More