Thursday, 15 January 2009

RBC Predicts Another Sell-off of Emerging Market Assets

Royal Bank of Canada analysts are little confident on the prospects for the Chinese economy and, therefore, the rest of emerging markets economies. Without giving the specific timing range, the shop says that capital flight from foreigners liquidating Chinese bond and stock holdings and the unwinding of the on and off-shore long yuan carry trade will be troublesome for the world´s fourth largest economy. Regarding other emerging markets, RBC's pessimistic view on emerging market flows this year expects $50 billion and $100 billion worth of outflows, suggesting ''we are in the eye of the storm with a second more emerging markets-centric sell-off awaiting.´´

RBC's view goes in the opposite direction to many other banks that are now signaling a mild revival of risk-taking and demand for emerging market debt. In recent days, flows into emerging market bond funds have returned into the black for the first time since August. One hedge fund manager in Chicago tells us that investors will return to their wait-and-see approach after the inauguration of U.S. President-elect Barack Obama. What is evident is that the rapid deterioration of economic data across Latin America will help deter many investors from flocking into the region's bonds and stocks in the short run.

1 comment:

  1. RBC Bank President Gordon Nixon - Salary $11.73 Million


    I'm a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC Bank account.

    There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
    Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
    Only problem is the loans officer was a replacement who wasn't familiar with these type of loans. She never informed me verbally or in writing about this new criteria.

    Phone or e-mail:
    RBC President, Gordon Nixon, Toronto (416)974-6415
    RBC Vice President, Sales, Anne Lockie, Toronto (416)974-6821
    RBC President, Atlantic Provinces, Greg Grice (902)421-8112 mail
    RBC Manager, Cape Breton/Eastern Nova Scotia, Jerry Rankin (902)567-8600
    RBC Vice President, Atlantic Provinces, Brian Conway (902)491-4302 mail
    RBC Vice President, Halifax Region, Tammy Holland (902)421-8112 mail
    RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506 mail
    RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542 mail
    Ombudsman for Banking Services & Investments, JoAnne Olafson, Toronto, 1-888-451-4519 mail

    "Fighting the Royal Bank of Canada (RBC Bank) one customer at a time"