Emerging market bonds are now a strategic holding for many investors. But the desired result from an allocation to emerging market debt cannot be achieved without first considering the attributes of hard and local currency-denominated bonds — the two broad
In this paper, portfolio manager Robert Neithart shares his thoughts on global themes that are affecting emerging market debt. Can you talk through your broad outlook for emerging markets, given the current uncertainty around growth in both developed and emerging
Investment grade and high yield credit in emerging markets have delivered divergent performance over the summer. Could this trend reverse, or is investor caution warranted in the high yield space?
Bond yields have nose-dived once more this summer in light of renewed geopolitical tensions and a decelerating global economy. GAM Investments’ Bogdan Manescu believes that fixed income investors can still find value and attractive yields in emerging market (EM) sovereign,
The growth of index-based investing in emergingmarkets debt exposes such strategies to increasing levels of systemic, developed-markets risk. As a result, emerging-markets allocations based on indexes may be less effective as diversifiers in portfolios comprising mostly developed-markets debt. Off-benchmark countries
Portfolio Manager Perspectives BlueBay Emerging Market Debt Update Fall-out from Argentina, combined with global growth concerns, results in increased divergence between EM sub-sectors. Global equity markets were once again volatile with a sell-off to start the week before staging a
Markets at a glance Core government bond yields were sharply lower last week as the US Federal Reserve and Donald Trump gave financial markets much to ponder. On Wednesday, the FOMC reduced interest rates by 25bps, the first move since
Current Strategy | August 2019 We see a range trading environment for EM, supported by Fed monetary easing and likely easing by other major developed and EM central banks. This should offset President Trump’s latest threat to impose new tariffs
It has been a very strong year for emerging external sovereign and local currency bond markets. Sovereign credit spreads have fallen, emerging currencies have risen against the U.S. dollar, and local bond markets have also rallied. The EMBIG index is
Weekly Commentary Key points 1 A dovish pivot by global central banks should extend the length of this economic cycle, supporting our upgrade to emerging market (EM) debt. 2 Remarks last week from the chair of the Federal Reserve appeared
Market review The resurgence of trade tensions caused a shift in the backdrop for emerging markets in May, weighing on investors’ appetite for risk. Even so, local bonds ended the month up 0.30%, as measured by the JP Morgan GBI-EM
Avoiding “diversification decay” in emerging-markets debt The threat to diversification posed by indexes – The growth of index-based investing in emergingmarkets debt exposes such strategies to increasing levels of systemic, developed-markets risk. – As a result, emerging-markets allocations based on
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
Investors turn to social media for tariff-truce updates ahead of a presidential in-person meeting at the G20 in June. Financial market participants spent much of the week monitoring the Twitter account of the US President in an attempt to decipher
Strategy Espresso Regular readers of the Espresso will know that we have been positive on emerging market (EM) local currency debt for some time. Despite escalating trade tensions weighing on market sentiment, we believe this hurdle will be passed, and
Macro/government bonds It has been a busy couple of weeks in terms of economic data releases, though core government bond markets have not moved appreciably on this type of news. Rising trade tension rhetoric between the US and China, as
Emerging Debt – Alpha and Beta Opportunities in the Current Environment Carl Ross, Emerging Market Debt When: Thursday May 16th | 12pm Welcome | 12.30pm Presentation & Lunch Where: Board Room, Gustav Mahlerplein 109-115, 26th floor, Amsterdam
For most institutional investors having both an allocation to Emerging Market Debt (EM Debt – issuers from emerging countries) and an ESG policy1 seems common practice. However, linking the two seems to be a somewhat greater challenge. The collection of
Zowel een allocatie naar Emerging Market Debt (EMDebt, emittenten uit opkomende landen) als het hebben van een ESG-beleid1 , lijkt voor de meeste institutionele beleggers een vanzelfsprekendheid. De koppeling van beide lijkt echter een enigszins moeilijkere opgave. Data van (bedrijven
Executive Summary Emerging markets debt can continue to perform going forward after a strong start to 2019. Its diversity and growth mean that many concerns are no longer valid. Emerging markets offer many defensive opportunities that have performed similar to
Whiplash! Early October 2018 was only six months ago, but it may feel even more distant considering the 10-year yields in the U.S., Germany, and Japan were trading around 3.20%, 0.58%, and 0.16%, respectively. At the time, we provided our
Executive Summary In our previous paper, “Inside the Engine Room of Emerging Markets Local Currency Debt”, we discussed the differences in behaviour between the three components of return—coupon, price appreciation and currency—and implications for active management. In this paper, we
The consensus recommendation for Fixed Income is underweight for almost 7 years! Just 3 out of the top 10 asset managers are overweight now! Read the Aegon Asset Management, NN Investment Partners and JP Morgan reasons at www.opiniopro.com
From crisis to Goldilocks We enter the second quarter with a constructive view on emerging markets debt (EMD). In our view, the combination of a dovish Federal Reserve (Fed)*, Chinese stimulus and a stable servicing backdrop should lead to a
Fixed Income Monthly Government bonds fell in February, defying disappointing economic data. Yields tracked modestly higher, although failed to keep pace with the recovery in equities and risk sentiment. Led by UK Gilts, most developed markets saw yields rise over
The integration of #ESG criteria often has a greater impact for emerging countries. Find out why in an interview with our expert #Karine_Jesiolowski (via @allnews_ch).
Fresh #StarkieBlog! https://t.co/YZrzQpIlIQ
Low interest rates drive housing market -> https://t.co/XjhuRim2P7 #Interest #mortgages via @ABNAMROeconomen
