Peru’s dramatic rise from market pariah to investors’ darling was capped this year with investment-grade status awarded by Standard & Poor’s and Fitch, opening Peruvian capital markets to huge interest among institutional investors. Ironically, Alan García, the president who made Peruvian debt a no-go area in the 1980s with soaring inflation and bond defaults, oversaw the upgrades in his second term, two decades later as a free-market convert.

"Snatching defeat from the jaws of victory." That’s one veteran Moscow-based fund manager’s view on recent events in Russia. And no, he’s not referring to the conflict with Georgia, where Russia’s still formidable military might has arguably carried the day.

The bank has shone through Kazakhstan’s financial sector gloom thanks to the chief executive’s cautious policies that he put in place while rivals were borrowing abroad to fund over-risky lending. Elliot Wilson reports.

Some European banks are coming through the credit crisis relatively unscathed, or even with enhanced market positions and reputations. Never has differentiation been more important.

Deutsche Bank has appointed Tiina Lee as head of European financial institutions capital origination. It is a new role at the bank that combines capital origination for debt and equity capital markets. The rationale is to take the bank’s alignment of the capital markets businesses in debt and equity to the next level, says Deutsche Bank. The present crisis, with banks, especially, in dire need of capital makes this type of approach from intermediaries increasingly important.

The European retail structured products market could be more than twice the size previously thought, according to Greenwich Associates.

There is an old joke that represents a quick and easy way to understand the basic principles of political and economic ideologies:

East Timor’s finance minister Emília Pires knows that wise investment of its $3 billion fund is crucial to the country’s poverty-stricken population.

Markets are more susceptible to the herd mentality and the creation of bubbles because of agents’ behaviour. Following the money can solve a large part of the asset price puzzle.

Many banks will become less-levered, more conservative, far duller institutions promising much lower and more utility-like returns to investors

US leaders might ponder the lessons of Venezuela and Iran.

Despite a new round of fundraising for distressed ABS, a market floor is not necessarily in sight.

Concerns about an economic slowdown now weigh on capital markets.

The blow-up of corporate trades in China might lead to regulatory restraints on transparent, run-of-the-mill derivatives use.

Government intervention in financial markets goes against the grain of any US administration. However, it appears preventing closure of the mortgage finance markets is more important than ideology.

Commodity prices will need to go higher again to prompt consumer and producer actions that bring them down.

But exchange still looks like a political tool.

The present round of bank reorganizations look as if they might not be as efficacious as leaving things well alone.

Massive interest in agricultural commodities has turned cautious. Investors are looking for a more lucrative and less volatile way to get exposure to long-term trends through equities and land. Peter Koh has a look at the menu.

ENRC floated in London last year on the promise that it would make transformational acquisitions globally. Its play for rival Kazakhmys has, however, proved abortive. So what next for ENRC and its frustrated shareholders? Elliot Wilson reports.

With the sale, among other assets, of the state telecommunications firm, privatization in Iran seems to be accelerating. There is an apparent eagerness to attract foreign investors. But, some say, if capitalism in Iran is being let out of the pen, it is still being kept on a tight leash. Dominic O’Neill reports.

The continent’s main markets, such as Nigeria, Kenya, South Africa and Angola, are attracting growing interest from investors. Foreign and local emerging market financial specialists analyse this change of attitude.

Under his presidency, Pakistan made huge progress in attracting foreign investment, privatization and bolstering the banking system.

The Brazilian billionaire built Banco Pactual into one of Latin America’s foremost investment banks before selling it to UBS in 2006. After an inglorious and turbulent two-year stint at the Swiss firm, he is returning to his entrepreneurial roots by setting up a new asset management company. He talks to Chloe Hayward about his plans.

As foreign banks – with the notable exception of Santander – draw in their horns, local mid-tier banks are racing to take advantage of the domestic boom in Brazil. Chloe Hayward reports.

Prime brokers' relationships with hedge funds have inevitably be modified by the credit crunch but ultimately the brokers have to provide the full range of services funds require at a reasonable cost and without undue constraints.

Lawyers around the world are readying lawsuits to file against banks that sold toxic products to investors. Which types of deals are likely to be the subject of the biggest payouts? And how will banks pay for them?

After a two-year hiatus, China’s regulators are allowing more foreign investment banks to enter the domestic capital markets. What are their strategies and is China’s potential as great as everyone assumes? Sudip Roy reports.

Growth potential, better corporate governance, a shot of expert knowledge and a troubled stock market are all reasons why family-owned firms might sell stakes to interested outsiders. Alex Warren reports.