WASHINGTON (Reuters) - Increasing debt distress in emerging markets means that China, now the world s largest official creditor, will need to start restructuring debts in the same way that Paris Club lenders did in past crises, World Bank Chief Economist Carmen Reinhart told the Reuters Next conference on Tuesday. What I think China will need to do to confront this is what previous other creditors in the past had done, which is you have to restructure. And restructure big time, meaning either lower interest rates, longer maturities, write-off in principal or some combination of that, Reinhart said in a panel discussion on economic inequality.
Overnight, the costs for bond issuers rise
In the past two days, sealed bond deals have indicated that investors now expect higher rates than the existing secondary market rates.
Synopsis
Bank of Baroda, Rural Electrification Corporation, and Indian Bank are now paying about 25-45 basis points higher for three-to-five-year money compared to their own secondary market rates.
MUMBAI: Interest rates are generally directional. When debt costs for some maturities head north, usually the others follow.
That precisely appears to be the outcome of the central bank move to help correct overnight rates. They have risen, and so have the costs for primary bond issues.
The list of high-profile companies looking to tap the public equity markets is getting longer.
Mytheresa, the luxury fashion platform, set terms for its initial public offering Tuesday. The company plans to sell 15.6 million shares at $16 to $18 each. Each American depositary receipt represents one ordinary share. Mytheresa plans to trade on the New York Stock Exchange under the ticker MYTE. Mytheresa is expected to price its IPO on Jan. 20 and trade the next day, a person familiar with the situation said.
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The list of high-profile companies looking to tap the public equity markets is getting longer.
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If Western European countries deregulate and adopt e-prescriptions, the market could see additional value of €30 billion. Getty Images
The next big thing for investors?
Try online prescriptions in Europe, a market that
Bank of America estimates will be worth €47 billion ($57 billion) by 2030, from €11 billion in 2020. That is a 10-year annual compound growth rate (CAGR) of 16%.
“We estimate the total pharmacy market in Western Europe (ex U.K.) was worth €193 billion in 2020, and is growing at a 2.5% CAGR. Yet online penetration is low, at only 6%, far behind other categories such as apparel, electronics and contact lenses. We think that this is about to change as the market deregulates, particularly in Germany,” said a team of analysts led by Benjamin Lacaille, in a recent note to clients.