Английский язык. Практический курс для решения бизнес-задач
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However, there are also some Russia-specific factors behind the great performance of Russian debt over the past several months. These include a significant current account surplus, forex reserves nudging the $60 billion mark, a state budget surplus, a growing economy, significantly improved political stability, and some hesitant progress in structural reforms. This is all in sharp contrast with 1997—1998, when the decline in yields was driven by foreign «hot money» rather than fundamentals. In contrast now domestic investor demand in the Eurobond market is more stable than foreign demand. For these reasons, and due to the relatively low chance of rising dollar interest rates this year, we think that Russian debt yields, however ridiculously low they might appear, are sustainable in 2003. And Russia is still trading some healthy 100 basis points (bps) wider than Mexico, which is one investment grade higher, and about 200 bps wider than Poland, which is now trading as a quasi-EU country.
As an example of corporate bonds, the yields of MTS and Vympelkom dollar debt instruments have also declined in the past year. It should be noted, though, that Vympelkom has closed the gap with MTS in terms of the cost of debt, which is due both to an improvement in Vympelkom’s financial results and MTS’ increasing leverage. MTS’ Eurobonds maturing in 2008 now probably serve as the best proxy for the cost of debt for both companies, which we would see in the tight area of around 8%.
Despite the decreasing macro risks, we do not think that there have been many changes, which would allow us to consider Russian equity as any less risky than we did previously. Legislation has not changed much, the corporate governance risks remain the same, the dealings in shares of UES and Surgutneftegas over the past six months have proved that the market remains an
Source: Alexander Kazbegi, Renaissance Capital, Company Handbook, 2003 (excerpt).
Essential Vocabulary
1. recap (recapitulation) – краткое повторение, суммирование
2. year-to-date (YTD) – с начала года до настоящего момента
3. second (third)-tier company – компания второго (третьего) эшелона
4. blue chip – голубая фишка
5. year-on-year (YoY) – в годовом исчислении или в течение года
6. investment universe n – инвестиционная вселенная
7. enterprise value (EV) – ценность предприятия
8. EV/Sales – отношение ценности предприятия к продажам
9. net margin – чистая маржа
10. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) – прибыль до уплаты процентов, налогов, амортизации материальных и нематериальных активов
11. EV/EBITDA – отношение ценности предприятия к EBITDA
12. Russian Accounting Standards (RAS) – российские стандарты бухучета (РСБУ)
13. Generally Accepted Accounting Principles (GAAP) – общепринятые стандарты бухгалтерского учета
14. International Accounting Standards (IAS) – международные стандарты финансовой отчетности (МСФО)
15. Compound Annual Growth Rate (CAGR) – кумулятивный годовой темп роста
16. EV/CF – отношение ценности предприятия к денежному потоку
17. Weighted Average Cost of Capital (WACC) –
средневзвешенная стоимость капитала18. trade up – зд. достичь возможного максимума
19. Return on Invested Capital (ROIC) – доходность инвестированного капитала
20.basket n – корзина (напр. валют)
21. percentage point – процентный пункт
22. Emerging Markets Bond Index (EMBI) – индекс облигаций развивающихся рынков
23. hot money – «горячие деньги» (краткосрочные потоки капитала, обусловленные стремлением воспользоваться более высокими процентными ставками или арбитражной возможностью, «бегство капитала»)
24. basis point (bps) – базисный пункт
25. quasi – якобы, почти, квази-, полу-, кажущийся, подобный
26. equity risk premium – премия за риск, связанный с акциями
Exercise 1. Answer the following questions.
1. How did the Russian stock market perform in 2003? 2. Why is it difficult to assess sector performance? 3. What are the aspects that play an important role in the valuation of the emerging market companies? 4. What are the best multiples to use for the valuation of Russian companies? 5. What companies looked good in 2003 according to Renaissance Capital experts? 6. How did Russian companies look from the international perspective in 2003? 7. What were the country-specific developments that contributed to the excellent performance of Russian companies in 2003? 8. What were the risks inherent in Russian stocks?
Exercise 2*. Find terms in the text that match definitions given below and make sentences of your own with each term.
1. 1/100th of 1%
2. shares in leading quoted companies that can be easily bought and sold without influencing their price and are regarded as low-risk investments
3. purchases of long-term assets, such as equipment, used in manufacturing a product
4. risk associated with a cross-border transaction, including but not limited to legal and political conditions
5. a sum of money or other property owned by one person or organization to another
6. a debt instrument issued by a borrower outside of its own country. The currency in which the bond is denominated can be foreign to the buyer, to the purchaser, or to both
7. rules for the preparation of company accounts
8. the total value at market prices of the securities at issue for a company, or a stock market or sector of the stock market
9. of securities, the amount by which the secondary market price exceeds the issue price or par value
10. the difference between two rates or prices
Exercise 3. Explain to the first-time investor in the Russian stock market risks and opportunities inherent in it. Formulate 10 commandments of investing in Russia.
Exercise 4*. Find three synonyms in the text for the term «прибыль», explain the difference in their meaning and make sentences of your own with each term.
Exercise 5*. Fill in the blanks using terms given below.