Hedging in the wooly emerging markets

Article Abstract:

Hedging capabilities for emerging-market currencies have shown improvement despite reported turmoils in the industry. Increasing emerging market exposure drives the demand for hedging strategies for a number of firms. Hedging products for emerging-market currencies have also grown such as the future contracts in Russian rubles, options contracts and nondelivery forwards. Moreover, Brazil and Mexico have a well-developed hedging capabilities while Eastern Europe and parts of Asia have a relatively less developed hedging capabilities.

Asset & Risk Management, Hedging (Finance), Futures

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Medium-term notes surge

Article Abstract:

Transactions involving medium-term notes (MTNs), which has grown significantly in the first two quarters of 1997, is forecast by analysts and traders to further increase. Levels were at $79,009 million in the first half of 1997, compared to $103,085 for the whole of 1995 and $83,491 for the same period in 1995. The increase is credited to the favorable terms MTNs offered compared to the rest of the market. Increases in transactions in the European markets is also expected to contribute to the growth.

Securities Dealers, Investment Banking and Securities Dealing, Security brokers and dealers, Finance, Prices and rates, Securities industry, Treasury securities, General Electric Capital Services Inc., Avco Financial Services Inc.

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Buybacks' volume heavy, but cresting

Article Abstract:

Stock buybacks are continuing in popularity, although the volume of activity has slackened. Corporate stock repurchases totaled $178 billion for 1997, but did not beat the 1996 volume increase of 72%. Motivating factors include abundant cash, strong growth and higher stock price or per-share earnings. Buybacks have reduced shares outstanding by 11% between 1986 and 1995.

Securities, Business enterprises, Stock redemption

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