The offering included $1 billion of 2.875 percent, three- year notes that priced at 99.855 cents on the dollar to yield 187.5 basis points more On Jan. this year, comes after the New York-based firm reported fourth- quarter earnings climbed 35 percent. Morgan Stanley’s sale, the third-biggest in the U.S. bond market after foreign financial firms dominated issuance of the securities during the first two weeks of this month. Morgan Stanley, the owner of the world’s largest brokerage, followed Citigroup Inc. 26 to start marketing its buyout debt as loan prices fell from the highest in more than three years. issued $260 million of notes with the same maturity and rating at a spread of 333 basis points.Įlsewhere in credit markets, Morgan Stanley sold $5.25 billion of notes in the biggest offering from a U.S. 19 that yield 415 basis points, or 4.15 percentage points, more than similar-maturity Six days earlier, Livonia, Michigan-based Valassis Communications Inc. Halyk Savings Bank of Kazakhstan JSC sold $500 million of 10-year bonds rated Ba3 by Moody’s Investors Service on Jan. Money managers seek the debt to profit from the extra yield paid by companies based in lower-rated countries, said Noel Hebert, credit strategist at Mitsubishi UFJ Securities USA in New York. “Investors are trying to figure out where in the world to go to earn a viable return on capital.” “Issuance levels are a sign of the explosive growth and demand for capital and credit that’s under way,” said Nathan Sandler, co-founder and managing partner of Los Angeles-based investment firm ICE Canyon, which oversees more than $2 billion in emerging market and global credit assets. The size of the market for bonds from developing nations expanded 17.5 percent last year, the most since 2005, while the global market’s growth slowed to 9.9 percent, according to Bank of America Merrill Lynch. corporate bond market this month, compared with the record $19 billion in October, according to dataįixed-income investors are favoring the debt as Barclays Capital forecasts emerging-market economies will grow 6.4 percent in 2011, versus 2.5 percent for developed countries. Emerging-market borrowers are poised to raise at least $13.9 billion in the U.S. Petroleo Brasileiro SA raised $6 billion yesterday in Brazil’s largest corporate debt offering. Nigeria is offering $500 million of 10-year debt in its first international bond sale. N-11 ex Iran Index, based on the current GDP of the N-11 countries in which the portfolio invests.īorrowers from China to Brazil to Nigeria are boosting dollar-bond sales, taking advantage of investor demand for assets from the fastest-growing economies amid growing concern that U.S. The portfolio will be benchmarked against a new index, the MSCI GDP Weighted Today we are translating this concept into an investible reality," Whilst the N-11 are a diverse group of countries, what binds them together is their large populations, superior growth potential and strong domestic consumption story. " It's been just over five years since the N-11 concept was established and it remains a long-term strategic investment proposition. The eleven countries already account for 19% of the world's population and benefit from attractive demographics, rising income and increased domestic consumption, the firm said. Jim O'Neill, now chairman of Goldman Sachs AM coined the phrase 'N-11' inĢ005 during his time as chief economist at Goldman Sachs. It will invest primarily in equity securities of companies from the "Next 11" countries: Bangladesh, Egypt, Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey and Vietnam. The Goldman Sachs N-11 Equity Portfolio will be made available to investors in the UK, Luxembourg, Singapore as well as several other Europeanĭomiciles: Austria, Finland, France, Germany, Netherlands, Norway and Sweden. Goldman Sachs Asset Management is seeking to capitalise on the investment fundamentals of the 'N-11' frontier markets with the launch of an equity portfolio run by its 140-strong team of investment professionals. Goldman looks to frontier markets with N-11 equity fundĪdded 26 January 2011 by Dan Jones, Senior Online Reporter, Portfolio Adviser