More than zero: Using emerging markets bonds to optimise portfolios There are a number of reasons many investors do not yet have emerging markets (EM) bonds in their portfolio, including awareness, understanding and difficulty of access. All of this means
Global emerging markets: gaining momentum Despite its huge impact on health and wellbeing, the Covid-19 pandemic has done little to disrupt the powerful structural trends driving growth in emerging markets (EMs). We expect these trends to gain additional momentum in
There are reasons to expect a slower and less comprehensive vaccine roll-out among EMs than in richer countries, and the fiscal damage done to already-fragile sovereign balance sheets may increase vulnerabilities. But the steady recovery of the asset class since
2020 will been known as the year of the coronavirus as the impact was far reaching and felt by every country in the world. Emerging markets were not immune, but 2020 marked a turning point for emerging markets debt markets
Investment Insights 2020 was a volatile year for emerging markets (EM). EM debt faced underperformance during the first half of the year, a sharp retracement and outperformance relative to developed markets during the early summer, and subsequent bouts of intermittent
2021 Outlook and Beyond The US election outcome and the hopes that the Covid-19 vaccine will be a tangible reality by the end of the year or the beginning of 2021 bode well for a worldwide economic recovery. China is
Investment Insights While each crisis is different, what is striking about this global pandemic is that (excluding China) the impact on emerging market assets appears to be more dire than the spread of the virus itself to those countries. The
Investment Insights Coronavirus-induced lockdowns have wreaked havoc on the global economy. Among emerging and developing countries, those that are heavily dependent on global trade, tourism, commodity exports, and external financing are likely to be the hardest hit, according to the
T. Rowe Price Insights from our Global Fixed Income Team How the prospect of further monetary easing could impact bond markets. Central banks are not done yet. With economic recoveries under threat, several developed market central banks, including the European
October 30, 2020
Emerging markets (EMs) are on the front lines of climate change, facing challenges that could hamper economic development and jeopardise human health and capital assets. Physical climate risks such as extreme heat, droughts, supernormal rain events, water scarcity and poor
The continuing lack of progress in Congress on a new stimulus package seemed to be weighing on sentiment, with investors particularly worried about the building financial pressures on states and municipalities. On Thursday, Republicans brought …
Emerging-market (EM) debt rebounded strongly in the second quarter across hard currency sovereign and corporate credit as well as local-currency debt. We believe the market has entered a new phase following the broad-based recovery in the second quarter that will
In emerging markets (EM), the path to progress and prosperity is made more difficult by considerable structural challenges. These challenges, such as entrenched economic interests, weak institutional checks and balances and overall lack of physical infrastructure, create barriers to inclusive
Emerging-market (EM) debt rebounded strongly in the second quarter across hard currency sovereign and corporate credit as well as …
Summary for the week ending on Friday, 30 July Last week’s corporate earnings reports demonstrated that some major companies are benefiting from the pandemic’s impact on consumer patterns. This was on clear display Thursday evening, when Facebook, Amazon.com, Apple and
Summary for the week ending on Friday, 30 July Last week’s corporate earnings reports demonstrated that some major companies are benefiting from the pandemic’s impact on consumer patterns. This was on clear display Thursday evening, when Facebook, Amazon.com, Apple and
While the coronavirus has dealt a painful blow to many of the emerging-market economies, we see the challenges arising from this episode as only one of several sets of factors likely to determine EM vulnerability and performance over the medium
This paper highlights five reasons why Emerging Markets (EM) in aggregate are more resilient today than in prior periods. A “healthier” index composition in addition to four other reasons support our analysis that EM drawdowns will be significantly more muted
Webinar – Impact COVID-19 op Emerging en Frontier markten Maandag 29 juni a.s. organiseert TCM Investment Funds het webinar “Impact COVID-19 op Emerging en Frontier markten”. Hiervoor nodigen wij u van harte uit. Fundmanagers Wytze Riemersma en Marco Balk praten
Interview with Portfolio Manager Juliana Hansveden Last Wednesday, 24 June 2020, Nordea AM hosted their weekly Morning Espresso session. The session starts with Sébastien Galy, Senior Macro Strategist, who gives a
The reform of the currency is mainly symbolic In 2019, the West African Economic and Monetary Union (WAEMU1 ) initiated a shift from the CFA franc, the local currency, to a newly created currency – the eco. This marked the
Upside surprises in labour market data appeared to drive much of last week’s positive sentiment. Stocks rose sharply on Wednesday, following a much smallerthan-expected decline in ADP’s tally of monthly payrolls. The payroll processing …
Market dislocation creating long-term opportunities Two major drivers are shaping the landscape for EM countries: Covid-19 and oil dynamics. We are mindful that current events will have very significant negative effects on the economic outlook for EM this year, leading
Why recent developments could impact the asset class A number of emerging markets (EM) are experimenting with quantitative easing. The fall in oil prices has opened up new opportunities for fixed income investors. There are attractive valuations in select EM
Market Commentary This is not the first time that Carmen Reinhart has cried wolf. As recently as May 2018, she argued in a Bloomberg interview that rising US inflation and US rate hikes would sink EM, because “more than two-thirds
Market Commentary As of 27 April 2020, eighteen times more people have died from coronavirus per million of population in developed countries (DMs) than in Emerging Markets (EM). This is partly due to measurement problems, but there may also be
Two major drivers are shaping the landscape for EM countries: Covid-19 and oil dynamics. We are mindful that current events will have very significant negative effects on the economic outlook for EM this year, leading many countries into recession. However,
Key points Emerging markets are not homogenous. Taking a bottom-up, idiosyncratic approach can help identify investment opportunities regardless of where companies are based or macroeconomic conditions. In times of heightened volatility, a patient approach and an extended time horizon can
Developing nations face multiple shocks with uneven ammunition To date, emerging markets appear to have coped relatively well with the pandemic, with fears of a largescale humanitarian crisis so far misplaced. However, Iran, Russia and Turkey remain hot spots. Multiple
The rapid global spread of COVID-19 and the subsequent lockdown measures have resulted in a global humanitarian and working capital crisis rolled into one event. The monetary and fiscal policy measures put in place by central banks and governments have
Webinar – Emerging market equities: Short term pain, long term gain? Emerging Markets have developed, broadened and deepened, but in current volatile markets, will they remain the key drivers of global growth? Please join Capital Group, an emerging markets pioneer,
White Paper It is telling that asset managers today closely monitor specific themes that would have seemed very niche just 20 years ago, such as the spending patterns of millennials in Asia. Why? Because Asian millennials' spending power has the
For emerging markets (EM) to do well, global markets require a growth rebound in Q3 or Q4. At a minimum, we would hope to see a peak in fatalities and new daily cases of the virus, followed by a clear
EXECUTIVE SUMMARY We believe that getting the country call right is the most important decision when investing in Emerging Market equities. Over the last 10 years, top-down (i.e., country and sector) Value has outperformed in these markets, even as bottom-up
Our Key Risk Indicators (KRIs) bridge the gap between sustainability disclosure standards such as those set by the Sustainability Accounting Standards Board (SASB) and quantifiable ESG trends developed specifically with investment analysis in mind. The following is an update of
We see improving outlook for credit in general due to overwhelming policy action to limit the coronavirus shock and recent market selloffs. Yet we have turned more cautious on emerging market (EM) local debt despite depressed valuations after selloffs. Why?
Webinar – Uncovering value in Emerging Market Debt The dramatic global liquidity and confidence shocks related to the spread of COVID-19 and the decline in oil prices caused a fast and intense sell-off: a market combination impacting especially emerging markets’
Investment Insights Capital Group’s Kirstie Spence explores how the coronavirus and general market volatility have affected emerging market debt, how liquidity is holding up, and provides her outlook for the asset class. How has emerging market debt fared in these
UITGESTELD – meer informatie volgt hopelijk binnenkort McKinsey & Company, De Nederlandsche Bank, en Lazard zullen hun inzichten delen over data science en AI in asset management, toezicht op ESG en emerging markets. De bijeenkomst wordt afgesloten met een drankje,
Global Market Strategist Office The members of the Invesco Global Market Strategist (GMS) Office are seasoned professionals spread around the world, and each of them offers a unique perspective and area of expertise to our clients — resulting in true
The Dow Jones Industrial Average just closed out its worst first quarter on record, after a dropping 23% since the start of the year1. The selloff has disproportionately affected equities relative to bonds, potentially resulting in an overweight to bonds
Since late February, U.S. equity and bond markets have been historically volatile—on the same level of the 2008-2009 Global Financial Crisis in fact. In March, we saw the fastest bear market correction in the S&P 500 Index on record. Rates
We have an ongoing preference for U.S. stocks over other developed markets. Mike explains why. We favor U.S. stocks to their other developed market peers over the next six to 12 months. Why? The U.S. policy response to the coronavirus
Rick Rieder, Russ Brownback and Trevor Slaven contend that even as markets are gripped with the trauma of wild swings, and continued uncertainties, the seeds of future investment opportunity are being sown. Ripley’s Believe It or Not! is an American franchise,
The global coronavirus pandemic is testing all aspects of everyday life. Jeff Shen discusses how his team are using human and machine-mined insights to assess the landscape and look ahead. These are unusual times, to say the least. Few in
Minimum volatility strategies are one way to seek more equity stability, which may help investors stay in the markets over the long run. Severe volatility tests even the most disciplined investors. The longest-ever bull market for U.S. stocks came to
Scott explains how the extraordinary outbreak-fighting policy action – and recent market turbulence – has changed our view on credit. We see improving outlook for credit – with unprecedented policy action to limit the coronavirus shock in place and sharply
What is the Emerging Markets (EM) team’s take on the current environment? We are seeing a level of volatility across global markets that hasn’t been witnessed since 2008, in what feels like a global liquidation event. Emerging markets are no
Key takeaways The combination of the coronavirus outbreak and oil price volatility will likely stunt global economic growth in the near term. Markets often overreact during a crisis and present attractive opportunities for research-based investors to add to positions at
