EM Fixed Income

UBP
By June 13, 2019 11:02

EM Fixed Income

Our views for the coming months 

After a strong start of the year, with EM sovereign bonds up 7.6%, EM corporate bonds up 6.8% and EM local bonds up 3.0% in USD terms, we expect carry to be the primary driver of returns in the coming months, amidst drawn-out trade negotiations between US and China. The US Federal Reserve’s dovish comments, combined with a similar stance across many EM central banks, should support EM bonds despite a more uncertain global macro climate.

We have a neutral strategic bias on spread duration given lower growth forecasts for EM and more muted inflows into the asset class, after the large flows seen earlier in the year. We remain, however, open to tactical long opportunities given the recent value created in spreads (HY particularly). We also have a neutral strategic bias on interest duration following the recent rally.

We have a neutral bias on EM FX as currencies, in general, are caught between global trade tensions and the risk that, were those tensions to ease, US short end rates could rise, helping the USD.

UBP
By June 13, 2019 11:02

Search

Twitter

Don't want to miss #research on #centralbanks? Check out @Opinio_Pro -> https://www.opiniopro.com/tag/central-banks/ #ecb #fed

Check out our events calendar, with a lot of interesting #webinars! https://opiniopro.com/events/ #research #HomeOffice

"Focus on #Italy: #macroeconomic and fixed income scenario" -> https://www.opiniopro.com/2020/05/amundi/focus-on-italy-macroeconomic-and-fixed-income-scenario/ via @Amundi_ENG #fixedincome

Be up to date with the latest #investment #research: sign up for our newsletter -> https://mailchi.mp/f5bb9afdbede/opiniopro @Opinio_Pro

Don't want to miss #research on #centralbanks? Check out @Opinio_Pro -> https://www.opiniopro.com/tag/central-banks/ #ecb #fed

Load More...

Search on date

June 2019
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930