Vietnam Seeks Bond Market Growth After Real-Estate Credit Crunch – Yahoo Finance

(Bloomberg) — Vietnam is seeking to expand the nation’s corporate bond market as it grapples with a credit crunch for a real-estate sector hurt by a handful of highly-leveraged companies, according to Finance Minister Ho Duc Phoc.
Most Read from Bloomberg
Elizabeth Holmes Judge Proposes Texas Prison, Family Visits
Trump Had Losses of $900 Million in Two Years, Jury Told
How Bad Will Housing Get? The Chill Gripping a Once-Hot Market Offers a Test
Bankman-Fried Says Collateral Crashed by $51 Billion as FTX Fell
The government does not see a wider impact beyond the select firms that have engaged in bad or illegal practices, he told Bloomberg News in Hanoi on Tuesday. It’s working to ease access to capital for property developers given the market rout and enable easier access to funding for years to come.
“Those companies in financial trouble are the ones that expanded too much and beyond their capacity, such as building dozens of projects at the same time and exceeding their financial abilities,” he said. “Now as the central bank tightens credit limits to fight inflation, these companies are facing liquidity problems and hurting their investors’ confidence.”
By 2030, Vietnam is aiming to grow corporate bond volumes to 25% of gross domestic product from about 11% currently, he added. The outstanding corporate bonds market is worth about 1,200 trillion dong ($48.3 billion).
Among other points mentioned, Phoc said the government wants to:
Speed up the process for developers to get legal rights to develop land
Work with the central bank to decrease borrowing costs for companies and help with restructuring debt payments
Boost investor confidence following recent anti-graft measures
Ensure bond issuers are offering buyers accurate information and repay the bond on time when it dues to build up investors’ trust
The statements come amid the government’s sweeping regulatory probe on corruption in the corporate bond market that’s landed heavily on Vietnam’s real estate developers. Property firms are now faced with a funding crunch, along with higher rates and warnings by the central bank against risky real estate loans, sending investors fleeing.
The broad anti-corruption crackdown may also have large implications for one of Southeast Asia’s fastest growing economies, home to some of the largest suppliers of conglomerates like Apple Inc. and Samsung Electronics Co.
Slumping Markets
Vietnam’s corporate bond sales and volumes tumbled this year, with sales through private placements falling by 51% to 240.76 trillion dong through October, according to the Vietnam Bond Market Association. That represents 96% of the total corporate bond sales, it added, citing exchange and securities data. The benchmark VN Index has slid 36%, driven by property and bank firms, to become the world’s worst-performing major gauge.
Concerns are now growing that the real estate market is at risk of a severe downturn that could be a drag on the broader economy. In response, the government appointed a team of ministerial-level officials to address the property sector’s credit crunch.
A turnaround may be coming. Prime Minister Pham Minh Chinh has said he wants to make it easier for property companies to access funds, issue bonds and obtain permits to sell projects, which in the process will restore confidence, said Phoc.
Among other changes, officials are also looking to make the process of changing construction permits easier and faster while giving developers more flexibility to change schedules to reflect market opportunities. That would include shifting from a planned office development to building an apartment complex and more affordable housing, he said.
But to convince the market that the guideline changes will help deliver this vision of a more streamlined system, the government must first ease investor concern, which he said has been hurt by recent speculation.
“The stock market has recently been hurt by a lost of investors’ confidence and rumors so we will give more information in official channels and must take measures to boost companies’ operations,” Phoc said, without providing details. The finance ministry is meeting with banks and companies to discuss solutions to stem the rout on Wednesday.
–With assistance from Clarissa Batino and Catherine Bosley.
Most Read from Bloomberg Businessweek
Tech Layoffs Send H-1B Visa Holders Scrambling for New Jobs
Elon Musk Keeps Quoting Elon Musk About His Genius
US Is Focused on Regulating Private Equity Like Never Before
Crypto’s Crash Is Helping a Few Couples Rekindle Their Relationships
Sears Limps Through What Could Be Its Final Holiday Season
©2022 Bloomberg L.P.
(Bloomberg) — Hyperloop Transportation Technologies, a technology-licensing company, has agreed to merge with blank check firm Forest Road Acquisition Corp. II, according to a statement confirming an earlier report by Bloomberg News.Most Read from BloombergMalaysia Latest: Muhyiddin Turns Down King on Unity GovernmentHow Bad Will Housing Get? The Chill Gripping a Once-Hot Market Offers a TestElon Musk's 2022 Wealth Loss Exceeds $100 Billion for First TimeFTX Latest: Key Takeaways From Tuesday’s
Shares of Meta, Alphabet Inc., Amazon, Microsoft and others have all suffered after a string of earnings that disappointed Wall Street.
A recession is defined as two consecutive months when the GDP is negative. During a recessionary economy, policymakers are striving to keep inflation and interest rates low and unemployment stable. Inflation is simply a decrease in the value of a … Continue reading → The post Recession vs. Inflation: Investment Guide appeared first on SmartAsset Blog.
The firm said in a regulatory filing last week that it plans to raise $650 million for its fifth fund.
(Bloomberg) — New Zealand central bank’s record interest-rate hike is a warning to investors that the global tightening cycle may be far from over, according to HSBC Holdings Plc.Most Read from BloombergElizabeth Holmes Judge Proposes Texas Prison, Family VisitsTrump Had Losses of $900 Million in Two Years, Jury ToldHow Bad Will Housing Get? The Chill Gripping a Once-Hot Market Offers a TestBankman-Fried Says Collateral Crashed by $51 Billion as FTX FellThe nation’s sovereign bonds sold off Wed
(Bloomberg) — President Joe Biden announced that his administration would extend the pandemic-era pause in student loan repayments through June 30 amid legal challenges to his college debt-forgiveness plan.Most Read from BloombergViolent Protests Erupt at Apple’s Main iPhone Plant in ChinaHow Bad Will Housing Get? The Chill Gripping a Once-Hot Market Offers a TestTrump Had Losses of $900 Million in Two Years, Jury ToldElizabeth Holmes Judge Proposes Texas Prison Camp, Family VisitsMalaysia Late
BEIJING (Reuters) -Three of China's biggest commercial banks have agreed to provide fundraising support to property developers, including industry giant Vanke, in a coordinated effort to support the country's embattled property sector. The property sector makes up about a quarter of China's economy. Bank of Communications Co Ltd (BoCom) said it agreed to provide a 100 billion yuan ($13.98 billion) line of credit to Vanke and a 20 billion yuan line of credit to Midea Real Estate Holding Ltd, two separate statements issued by the bank said on Wednesday.
China might be the only investment opportunity that causes more consternation than cryptocurrencies. It has earned a reputation as the place where Western money goes to die.
Baidu, which generates most of its revenue from ads on its search engine, has seen a recovery since the second quarter, before which strict zero-COVID policies in China had led to frequent lockdowns that undermined economic activity. Baidu's revenue rose 2% to 32.54 billion yuan ($4.56 billion) in the three months to Sept. 30, beating the 31.79 billion yuan average estimate of 20 analysts, according to Refinitiv data.
Stocks were rising Wednesday following the release of the minutes from the Federal Reserve’s latest meeting on interest rates.
A Charlotte-based executive with Charles Schwab shares tips on how investors can navigate the Federal Reserve's latest rate hike with more possibly to come.
PARIS (Reuters) -Societe Generale, France's third-biggest listed bank, and U.S. investment management company Alliance Bernstein plan to form a joint venture focusing on global cash equities and equity research, they said on Tuesday. The venture with Alliance Bernstein comes as SocGen aims to keep up with bigger and more profitable competitors such as BNP Paribas in France and leading Wall Street banks Goldman Sachs and JP Morgan.
Jack In The Box Inc (NASDAQ: JACK) reported fourth-quarter FY22 sales growth of 44.6% year-on-year to $402.8 million, beating the consensus of $392.52 million. Jack in the Box Same-store sales increased 4.0% in the fourth quarter, comprised of an increase in company-operated same-store sales of 11.4% and an increase in franchise same-store sales of 3.2%. Systemwide sales for the fourth quarter increased 4.1%. Del Taco Systemwide sales increased 4.2% driven by positive results in both franchise a
Telecom Italia (TIM) will keep its offices across Italy closed on Fridays as part of a deal with unions to expand home working, cut energy costs and improve work-life balance for thousands of staff. The former phone monopoly, one of the country's largest private employers, said it would increase the weekly days of home working that staff can take to three from two for around 75% of it current 42,000 domestic employees. The scheme will start next February and initially run for a year.The plan "will enable employees to better plan their activities outside of work…and to achieve energy efficiency and cut carbon emissions", TIM said, adding it expects its staff will reduce commuting by 60% in big cities like Rome and Milan.
(Bloomberg) — Zoom Video Communications Inc. declined about 6% in extended trading after reporting its slowest quarterly sales growth on record and slightly reduced its full-year revenue forecast.Most Read from BloombergMalaysia Latest: Muhyiddin Turns Down King on Unity GovernmentSwedish Housing Is Now in the Worst Rout Since the 1990sDisney Shares Jump on Optimism Over Iger’s Surprise ReturnCrypto Brokerage Genesis Is Said to Warn of Bankruptcy Without FundingBeyond Meat Plant’s Dirty Conditi
The cryptocurrency has endured a series of dramatic market meltdowns in the past. Can it recover yet again?
Uniper, the largest corporate casualty of Europe's energy crisis so far, said Berlin would need to pump as much as 25 billion euros ($25.8 billion) of additional equity into the struggling gas importer to cover losses incurred after Russia cut supplies. The amended bailout deal reflects the cancellation of a gas levy designed to help German gas importers bear additional costs, and raises the tally for Uniper's nationalisation to more than 51 billion euros. Sources said last month that tens of billions in additional funding were necessary to stabilise Uniper after Berlin decided to scrap the levy, which would have allowed gas companies to pass on most of the higher procurement costs to customers.
A surge in the cost of shipping oil between the world’s ports is buoying energy prices, even as a gloomy economic outlook has dragged down crude near its lowest levels of the year. Economic fallout from the war in Ukraine has severed many of the short oil- and petroleum-product trading routes across the Baltic and North seas. Now, as Europe scrambles to find new suppliers and Russia looks to send exports elsewhere, tankers are spending more time on water before reaching their destinations.
Among the telecoms is Verizon Communications (NYSE: VZ), the second-largest provider behind AT&T. The stock sports an attractive 6.89% dividend yield, which also places it in red-flag territory. Often, when a stock's dividend yield rises higher than 5%, it's seen as a warning sign that the company won't be able to pay its dividend obligations sustainably. Should Verizon shareholders be concerned?
Before SoFi Technologies (NASDAQ: SOFI) reported its third-quarter earnings, few investors wanted to invest in this unloved financial company amid a terrible economic environment. Here are two reasons some investors are now interested in SoFi Technologies and one reason why you still want to be cautious.


Leave a Reply

Your email address will not be published.