There have been some rearrangements on the Hungarian foreign currency paper market, and Portfolio has examined Reuters’s data to see what happened. Some have sold bigger items, and there are new participants as well.
New foreign investors have appeared on the Hungarian bonds market!
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New investors have appeared on the Hungarian market for dollar bonds, while others’ presences have significantly decreased. Surprisingly, investors from Taiwan have appeared; two firms have purchased Hungarian papers that will expire in 2041.
In their report last spring, they concluded that there are six participants on the market with stock reaching $100,000,000: BlackRock, Vanguard, Prudential, JP Morgan, Goldman Sachs and Manulife.
In their new examination, they only looked at investors with stock of over $10,000,000 in each dollar bond case.
Four of the previously mentioned investors are still in the lead; however, Prudential has sold Hungarian papers in huge items, over $400,000,000 disappeared from their position of nearly $500,000,000 last year. Goldman Sachs has dismantled their position of almost $100,000,000 almost entirely.
Vanguard has taken over BlackRock’s throne, as in Vanguard’s case, there was only a minimal decrease, while BlackRock decreased their exposure by over $350,000,000.
The dismantling of stock by big owners can be explained with two things:
- They could have profited, meaning they could have gotten out of the papers with a considerable gain due to the constant rise of exchange rates in recent years.
- There was some chaos in the American repo market last fall, and some overseas investors might have had to liquidate suddenly.
The Government Debt Management Center has appeared on the market as a purchaser and bought back dollar bonds of almost $800,000,000.
Along with the Government Debt Management Centers, others have also appeared on the market who only had smaller positions before or were not participating at all, according to Reuters’ data.