Economics and Markets

Exclusive: Eaton Vance Looks Beyond the Index

Most dedicated fixed-income investors have by now realized that emerging markets cannot be treated homogenously, and that blanket statements or generalizations about “emerging market debt” tend to be misleading, or even plain wrong. But with a total of 110 sovereign credits forming the investible EM universe, indexes represent less than half of all investible assets – which is why Eaton Vance, a…

8 Oct 2019

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

EM got some traction last week as the dollar came under renewed pressure. However, the global backdrop remains negative for EM. US-China trade talks this week are unlikely to yield any progress, which means the next round of tariffs will go into effect mid-October. While odds of a Fed rate cut this month have risen, we do not think the positive liquidity story will outweigh the negative global…

7 Oct 2019

SWOT Analysis: GCC Credit Markets in 60 Seconds

Bonds & Loans examines the strengths, weaknesses, opportunities and threats across the GCC following a research trip to the region.

3 Oct 2019

Brazil: The Composition of Growth Matters

One of the consequences of low growth is that the economic recovery is not widespread across sectors. Some continue to perform well in the midst of stagnation – and even contraction, in the case of many others.

1 Oct 2019

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

US-China trade tensions are likely to remain high. China reported slightly firmer than expected September PMI readings over the weekend. With more tariffs going into effect in September and again in December, however, the economy is still facing stiff headwinds. This will continue to have negative knock-on effects on the rest of EM.

30 Sept 2019

Kenya: Political Tensions Pose Moderate Risk to Fiscus

So far, 2019 has seen a marked escalation of political tensions within Kenya’s ruling Jubilee coalition. The coalition – led by President Uhuru Kenyatta and Deputy President William Ruto – has so far been able to effectively keep a lid on the political and ethnic divisions that boiled over into widescale violence ten years ago. The recent arrest of a high-profile minister has sparked concerns…

27 Sept 2019

Brazil: Between Good Intentions and Harsh Reality

Privatization and asset sales are on the agenda for the Bolsonaro administration as it seeks to restore the fiscus; but time is running short for the government to start delivering, warns Zeina Latif.

24 Sept 2019

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

We think the Fed has signaled that the bar to another cut is high. Unless the US data weakens considerably, we see rates on hold for now and this means the liquidity story for EM has worsened. Elsewhere, US-China trade talks appear to be going nowhere. With no end in sight to the trade war, we remain negative on EM.

23 Sept 2019

IDFC Asset Management: NBFC Defaults Are Cyclical, Not Structural Issue

Late last year, India’s markets were rocked by a number of high-profile defaults in its non-banking financial institutions (NBFCs) sector. Since then, Narendra Modi’s thumping election victory, weakening domestic consumption and the government’s potential Eurobond debut have added to the noise, painting a puzzling picture of India’s underlying economic potential. Bonds & Loans speaks with Suyash…

18 Sept 2019

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

EM is likely to come under pressure this week if risk-off sentiment picks up from the Saudi bombings. The oil producing countries may outperform but we think the global backdrop for EM remains negative, especially as US-China relations remain in flux. While things are not getting worse, neither are they getting better. Meanwhile, markets are coming to grips with the fact that the Fed is unlikely…

16 Sept 2019

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