...Turkish Corporates Most Exposed to FX Risk Among our rated EMEA corporate portfolio, Turkish corporates are the most exposed among EMEA emerging markets to the risks of a rise in US interest rates and a strengthening dollar, due to their large unhedged FX exposures. Kazakh issuers are the next most exposed, while Russian, Ukrainian and South African companies are mostly better hedged. Pension Deficits - Rising Life Expectancy a Greater Threat to Corporates than Low Interest Rates Low rates have been the main factor behind big increases in corporate pension deficits in the UK and Germany. Rates are however expected to increase in the medium term, which will at least partially reverse the deteriorating deficits. An increase in longevity beyond what has already been factored into expected pension obligations, however, would lead to an increase in deficits and would be highly unlikely to be reversed. Buoyant Demand for Corporate Hybrids Continues in 1H15 1H15 hybrid issuance showed a material...
