Latest news with #Moody'sInvestorsService
Yahoo
16 hours ago
- Business
- Yahoo
World's Largest Publicly Traded Hedge Fund Enters ETF Space
Man Group, the world's largest publicly traded hedge fund manager, filed a preliminary prospectus for two active fixed-income ETFs, marking the London-based firm's first entry into exchange-traded fund distribution as alternative managers increasingly turn to ETFs for access to complex strategies. According to the June 13 filing with the Securities and Exchange Commission, the Man Active High Yield ETF and Man Active Income ETF will use active bond strategies, including derivatives, high-yield bonds, emerging markets exposure and illiquid credit investments—bringing institutional-grade bond management to everyday investors through ETFs. The move represents more than just another ETF launch in an already crowded marketplace. It signals how ETFs are evolving from their origins as simple baskets for broad market exposure into ways to deliver complex investment strategies once available only to hedge funds and large institutional investors. The Man Active High Yield ETF will invest at least 80% of net assets in high-yield securities rated below investment grade, according to the filing. The fund may invest up to 30% in securities rated below B3 by Moody's Investors Service or lower than B- by S&P Global Ratings or Fitch Ratings. The Man Active Income ETF seeks to generate current income as its primary objective, with capital growth as a secondary objective, according to the filing. The fund will invest across four primary sectors: high-yield corporate debt, investment-grade corporate debt, government and agency debt, and securitized debt. The filing reflects how ETFs have evolved from simple, index-tracking funds into vehicles for active strategies. For newer investors, this opens access to institutional-grade tools they couldn't reach before, but it also brings complexity. The filing reveals active bond management approaches from a firm known for its expertise in hedge funds. The strategies may invest in distressed securities, contingent convertible bonds and bank loans with extended settlement periods, according to the filing. Both funds are non-diversified and may use derivatives for hedging and return enhancement, including futures, options, swaps and credit-linked notes, according to the filing. GLG Partners LP serves as sub-adviser with portfolio managers Michael Scott overseeing the High Yield ETF and Jonathan Golan managing the Income ETF. Man Group reported $172.6 billion in assets under management as of March 31, according to its April trading statement. The firm saw $3.6 billion in net inflows during the first quarter despite geopolitical and economic | © Copyright 2025 All rights reserved
New Straits Times
4 days ago
- Business
- New Straits Times
Affin earns spot on Fortune Southeast Asia 500 list again
KUALA LUMPUR: Affin Group has been named one of Southeast Asia's largest companies by Fortune for the second consecutive year, recognised for its revenue, profit, balance sheet strength, and employee base. Affin Group said in a statement that this achievement strengthens its strategic presence in the region's evolving financial ecosystem. President and group chief executive officer Datuk Wan Razly Abdullah said the group's continued inclusion in the Fortune Southeast Asia 500 list reflects its growing strength and relevance in a rapidly changing financial landscape. Wan Razly said it indicates the group is "not only keeping pace but moving ahead with focused ambition and a clear strategic agenda". "As we commemorate 50 years of Always About You, this milestone reinforces our long-term commitment to value creation. "Guided by the Affin Axelerate 2028 (AX28) Plan, we are advancing with purpose, strengthening client partnerships, unlocking new growth opportunities, and delivering impact where it matters most," he said. Further demonstrating its strong growth, Affin Group recently secured its first international credit rating of A3 with a stable outlook from Moody's Investors Service. The group also successfully debuted in the US dollar bond market, attracting strong global investor demand. The final order book exceeded US$1 billion across 67 investor accounts, representing a 3.5 times oversubscription. These achievements reflect strong investor confidence and affirm Affin's growing credibility in both regional and international markets.
The Hindu
12-06-2025
- Business
- The Hindu
Moody's downgrade and U.S. fiscal reality
Amid the chaos set in by churning events and spurring global uncertainty, there is an interesting financial trend that mainstream analysts are perhaps missing. It is well known in economic history how certain shifts don't arrive with the roar of crisis or the panic of a crash, but with the quiet authority of inevitability — which does have a crisis bearing, a fact that often emerges post the aftermath of a shock. When Moody's Investors Service finally downgraded the credit rating of the Unites States on May 16, there was no dramatic nosedive in the markets, no frantic emergency meetings, no calamitous plunge in investor confidence. Outwardly, the world barely flinched. Yet beneath that projected calm, a silent but monumental shift occurred — one, we argue, may be remembered not for the noise it made, but for silently indicating the end of a long era of unchallenged U.S. fiscal supremacy. Foreshadowed for years What made this moment so striking was not that it happened suddenly, but that it had been forecast in whispers and footnotes of financial discourse for years. For many, this was a long-delayed acknowledgement that the financial world had been indulging in a fiction for far too long. For most of the post-war period, the U.S. held a rarefied status in the global economy. Its treasury bonds were the closest thing the financial system had to a sacred object, utterly liquid, unfailingly safe, and supported by the full faith and credit of the world's largest and most dynamic economy. This privileged position was not merely a reflection of economic size or military might; it was about trust. Trust in America's institutions, its political system, its capacity for self-correction, and its willingness, however flawed, to eventually rein in excess. But the numbers have grown impossible to ignore. From discipline to dependence A national debt that once stood at manageable levels has ballooned into a structural liability, breaching 120% of Gross Domestic Product (GDP), and with U.S. President Donald Trump's latest 'Big New Bill', it's showing no signs of retreat. Policymakers now speak about fiscal sustainability in theoretical terms, while pushing actual solutions further down an ever-narrowing road. This erosion has been gradual but persistent. The post-2008 era ushered in a new norm of emergency spending, first to rescue banks, then to stimulate recovery, and later to shield households from the pandemic's chaos. Each intervention may have been justified in its own moment, but together they forged a long-term addiction of monetarists to deficit finance. Unlike the post-World War II generation that slashed debt aggressively through a combination of growth and fiscal discipline, today's political class appears paralysed by polarisation and unable to even pass budgets without the threat of shutdown. The confidence that also once underpinned U.S. borrowing, rooted as much in political stability as in economic fundamentals, has taken a series of subtle but significant blows, culminating in Moody's reluctant decision to strip away its final vote of unquestioning faith. Global recalibration But this downgrade, though symbolic, carries implications that ripple far beyond Wall Street. It comes at a time when global financial allegiances are shifting, when the dollar's centrality in international reserves is already under quiet attack, and when major economies are exploring alternatives to a U.S.-centric system. Central banks that once loaded up on treasuries with near-religious regularity are now hedging with gold. The euro and other digital currencies are not a distant idea. And while the markets have taken this moment in stride, history teaches us that great financial unravelings rarely begin with panic — they begin with a shrug. The cost becomes visible only later. It is in this context that the Moody's downgrade must be understood, not as a trigger of immediate collapse, but as a marker of long-building pressure finally piercing the illusion of permanence. The world has not yet turned away from the dollar, but it has begun to look around. And that moment of looking, that quiet recalibration of confidence, may ultimately prove more consequential than any single rating change. As the curtain lifts on a new era of fiscal realism, it is worth asking what this development means not just for the U.S., but for countries that have built their own economic strategies around American reliability. The implications for India and the rest of the world are only just beginning to come into focus. India's fiscal mirror For India, this moment is less about what happens in Washington and more about what it reveals back home: about our financial vulnerabilities, habits, and unwillingness to learn until the consequences knock louder and harder in a crisis like emergency-response mode. The Indian economy is not immune to global fiscal contractions. With general government gross debt hovering near 80% of GDP (IMF 2025), our buffers are limited, especially in an environment of rising global interest rates. As U.S. Treasury yields climb to accommodate perceived risk, investors begin to reprice emerging market debt, and India, despite its growth story, remains vulnerable. This isn't just speculation. We saw it vividly during the 2013 taper tantrum, when capital outflows pummelled the rupee and exposed our dependence on external financing. A similar shift today would pressure the Reserve Bank of India, complicate deficit management, and test India's ability to shield growth without stoking inflation. Deeper fiscal malaise But beyond macro shocks lies a deeper malaise, which is our domestic fiscal culture. While India dreams big, it continues to drag a ball and chain of fiscal populism. Successive governments have treated pre-election seasons as open tabs of irrational fiscal exuberance, which come with serious budgetary and fiscal health warnings. The recent Lok Sabha and Vidhan Sabha elections also saw parties tripping over themselves with giveaways, and if Bihar's upcoming polls are anything to go by, we should probably brace for another round of headline-grabbing promises. One suspects the only limit left is creativity. This fiscal approach comes with compounding ripple effects. High deficits crowd out private investment, distort credit flows, and leave little room for developmental capital. Structural inefficiencies, such as low tax compliance and judicial delays in insolvency cases, to underperforming logistics and lagging education outcomes, further create friction that slows down our momentum when we most need agility. The result is a disconnect. Globally, the downgrade of the U.S. credit ratings serves as a mirror and a point of deeper financial, fiscal strategic introspection. Emerging markets with heavy debt burdens and borrowing positions accompanied by low-growth cycles, like Brazil and South Africa too are already facing rising borrowing costs. Even developed economies, including Germany (debt-to-GDP at 62.5%) and Canada (at 110.8%), now operate under closer scrutiny. The message is clear: credibility is no longer inherited; it must be earned and maintained. For India, this is surely not a moment to panic, but a moment to pause, reflect, and enact fiscal caution and financial discipline. Not because we are in the line of fire, but because the conditions that brought the fire elsewhere are not unfamiliar. The discipline we often defer cannot be delayed forever. If fiscal credibility is being repriced globally, India must ask whether it wants to wait for markets to demand change or lead that change on its own terms. Caution and prudence for India Fiscal caution and prudence are no longer virtues for crisis moments, they are the foundation for resilience in this age of the new normal. Caution for India does not mean a widespread adoption of austerity measures; rather, it means there is more clarity needed in strategy, both in the short, medium-and-long term. It means investing not in headlines, but in core economic foundations: job-creating infrastructure, future-ready skills, and systems that outlast election cycles. It means resisting the seduction of easy populism. Loan waivers and free power may win votes, but they do little to build the trust that both global capital and citizens themselves seek in a modern state. Structural reforms must move beyond committee reports. Trade resilience must be rooted not in slogans but in strategic diversification. Above all, Indian policymakers need to recognise that in the age of capital mobility, the loss of credibility is rarely noisy, but always consequentially expensive. While the U.S. has reminded the world that prestige is not protection, India should take the hint early. (Deepanshu Mohan is Professor and Dean, O.P. Jindal Global University. He is currently a Visiting Professor at London School of Economics and Visiting Research Fellow, University of Oxford. Ankur Singh contributed to this column as a research analyst)
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Business Standard
04-06-2025
- Automotive
- Business Standard
India Inc resilient to tariffs, to invest $50 bn despite global headwinds
Indian enterprises are well positioned to handle the impact of tariffs and geopolitical tensions, Moody's Investors Service and its local arm Icra Ratings said on Wednesday. India Inc, however, will be "measured" in making investment decisions in the new fiscal because of the external headwinds, they said. "Indian non-financial companies are not directly affected by US import tariffs due to their focus on domestic consumption and low dependence on exports," a statement from Moody's said. It further noted that government initiatives to boost private consumption, expand manufacturing capacity and increase infrastructure spending will help offset the weakening outlook for global demand. "Private capex to remain measured amid external headwinds," it said. Indian corporates will continue investing in new capacity to cater to the sustained growth in domestic consumption, and Moody's estimated that non-financial companies rated by it will spend around USD 50 billion annually in capital spending over the next two years. It said most companies will spend from internal accruals, and the average portfolio leverage will continue to remain at 3 times the operating profit. Moody's Ratings managing director Vikash Halan said India's manufacturing growth will be constrained by challenges such as inadequacy of skilled labor, evolving logistics infrastructure and complex land and labor laws. Select auto parts categories, cut and polished diamonds, and seafood exports have notable exposure to the US market and may face headwinds from demand moderation or rising competition, it said, adding that the textiles sector is expected to benefit from its comparative advantage over China. Geopolitical tensions, particularly the India-Pakistan conflict, may weigh on near-term demand for travel and hospitality services. Nonetheless, India's overall exposure to these risks remains moderate, it said. Icra's chief rating officer K Ravichandran said after being muted in FY25, urban consumption is expected to recover in FY26 supported by income tax relief, further rate cuts, and easing food inflation, and the same will benefit automobiles, consumer goods, and services sectors. Meanwhile, on the infrastructure creation front, Icra forecasted a slowdown in road construction activity in the near-term, whereas other segments like ports and data centers will continue to witness significant investments, benefiting from solid government support, healthy capital outlays and a large pipeline of projects. The rating agencies said the country needs massive investments to meet its 2070 net-zero pledge, explaining that the country is grappling with the trilemma of energy security, affordability and transition. Over the next decade, these investments are projected to constitute 2 per cent of real GDP for the electricity value chain, encompassing power generation, storage, transmission and distribution, it said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Arabian Post
04-06-2025
- Business
- Arabian Post
African Nations Urged to Boost Local Debt Markets Amid Global Funding Shift
African countries face growing challenges in accessing international finance as global economic uncertainty and tightening monetary policies restrict foreign capital flows. Moody's Investors Service has highlighted the urgent need for these nations to develop robust local debt markets denominated in their own currencies to mitigate risks associated with reliance on external funding. As global financial conditions tighten, foreign investors have become more cautious about exposure to emerging markets, including many African economies. This shift has led to a decline in capital inflows, leaving governments increasingly vulnerable to sudden stops or reversals in funding. Moody's global head of sovereign risk emphasised that liquid and deep domestic debt markets can provide a crucial buffer, enabling governments to raise funds without depending heavily on foreign creditors. Currently, many African countries issue debt primarily in foreign currencies such as the US dollar or euro, exposing them to exchange rate risk. Currency depreciation against these hard currencies can dramatically increase debt servicing costs, placing pressure on public finances. Developing local currency bond markets would allow governments to borrow in their own currency, reducing this vulnerability and helping to stabilise fiscal positions. ADVERTISEMENT Several African countries have already taken steps to expand their local debt markets. Nigeria, Kenya, and South Africa stand out with relatively more developed government bond markets, which have helped these economies absorb shocks from external capital volatility. However, the scale and liquidity of these markets remain limited compared to advanced economies, making them less effective as shock absorbers. Moody's report stresses that broadening the investor base is critical. This includes attracting domestic institutional investors such as pension funds, insurance companies, and mutual funds, which have longer-term investment horizons and are less likely to withdraw capital abruptly. Expanding participation by local investors can deepen the market and enhance price discovery, increasing market efficiency. Policy reforms to improve the regulatory environment, market infrastructure, and transparency are essential to build investor confidence in local markets. Strengthening legal frameworks for debt issuance and enforcement, improving settlement systems, and enhancing credit rating capabilities will facilitate greater market participation. Governments must also maintain prudent fiscal management to ensure debt sustainability and investor trust. The trend toward tightening global financial conditions reflects actions by major central banks to raise interest rates and normalise monetary policy after years of ultra-loose settings. This environment reduces appetite for higher-risk emerging market debt, especially those with significant external borrowing and weaker fiscal fundamentals. African nations with large current account deficits and high foreign currency debt are most at risk of capital flight and currency pressures. At the same time, China's retrenchment from aggressive lending in Africa is altering traditional funding patterns. The decline in Chinese infrastructure loans and project financing has created financing gaps that are not easily replaced by private capital. Local debt markets can offer a more sustainable alternative, giving governments greater control over funding costs and maturities. ADVERTISEMENT International financial institutions have also been encouraging African governments to tap domestic markets and enhance fiscal resilience. The International Monetary Fund and World Bank support capacity-building initiatives to develop sovereign bond markets and encourage the issuance of domestic debt instruments. These efforts align with the broader agenda of promoting sustainable debt practices and reducing vulnerability to external shocks. Despite the push for local currency debt markets, several challenges remain. Many African economies are characterised by low levels of financial inclusion, limited investor sophistication, and constrained savings pools. These factors restrict demand for government bonds and complicate efforts to build deep, liquid markets. Inflation volatility in some countries adds further complexity. Investors may demand higher yields to compensate for inflation risk, raising borrowing costs. Maintaining price stability is therefore a key complementary objective to developing local debt markets, ensuring that bonds remain attractive and sustainable. The broader economic context also matters. African economies face structural hurdles including reliance on commodity exports, limited industrial diversification, and infrastructural deficits. Strengthening economic fundamentals through reforms aimed at boosting growth and reducing fiscal deficits will enhance creditworthiness and market access. The rise of regional capital markets integration presents another avenue to bolster liquidity and investor interest. Initiatives such as the African Continental Free Trade Area and the establishment of pan-African bond indices could foster cross-border investment, broadening the market beyond national boundaries. As sovereign risk dynamics evolve, credit rating agencies are recalibrating their assessments to account for greater exposure to domestic debt and currency risks. Moody's and others acknowledge that while local debt markets reduce foreign exchange exposure, they introduce new vulnerabilities related to domestic economic conditions and market depth. Continuous monitoring and adaptive policy responses will be necessary to balance these risks.
