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Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

EM FX had a solid week, helped by overall weakness in the dollar. Trump’s threats against China turned out to be much ado about nothing and so risk assets ended the week on a strong note. This week, markets will be looking for some sort of response from China but quite honestly, Trump did so little that we may not see anything beyond some snarky Tweets from the Global Times. For now, the…

1 Jun 2020

Spike in Airline Debt to Weigh on Sector's Recovery

A recent report from the International Air Transport Association (IATA) notes that the global debt of the airline industry could climb by 28% to USD550bn by end 2020 – a USD120bn increase from the start of the year.

28 May 2020

BlackRock: Financial Performance Link to Sustainability in Times of Crisis is About People

ESG-tilted portfolios and assets have outperformed their non-sustainable counterparts through much of the recent market turbulence, according to MSCI and other index and data providers. In a recent paper, BlackRock says a positive correlation between ESG and performance appears strongest for firms that prioritise people.

26 May 2020

Oil Market is Rallying ‘Much Too Soon’ – ING

Oil markets continued to make a modest recovery this week amidst moves to ease lockdown restrictions in a number of countries worldwide. But a sustained recovery could be some way off, according to Warren Patterson and Wenyu Yao, commodities economists at ING.

19 May 2020

Fitch Sees Record Sovereign Defaults in 2020

The severe shock from the coronavirus pandemic is likely to lead to a record spike in sovereign defaults as risks grow for countries with weak fundamentals and heavy exposure to commodities and tourism, according to Fitch Ratings.

15 May 2020

Barings Sees Buying Opportunity in Short-Dated EM Debt

Emerging market corporate debt spreads blew-out following a sharp selloff in March, but the effect on issuer yield curves is creating new opportunities to buy into short-dated corporate debt, according to Barings.

14 May 2020

EM Assets Torn Between Fundamentals Deterioration and Unprecedented Liquidity Injections – Barclays

As a tussle between deteriorating fundamentals on the ground and unprecedented liquidity support from global central banks and governments ensues, emerging market sovereign bonds are starting to stratify between larger “haves” and smaller “have-nots”, with few countries falling in between, according to analysts at Barclays.

14 May 2020

Sustainable Bond Issuance Falls, But Social Bonds on the Rise – Moody’s

Total volumes of sustainable bond issuance are set to fall as the COVID-19 pandemic creates a rocky environment for borrowers, according to Matthew Kuchtyak, AVP-Analyst at Moody’s. Sustainable bond issuance is likely to total USD325bn this year, a downward revision of USD75bn from the USD400bn forecast previously.

11 May 2020

Private Sector Deleveraging Required to Plug EM Current Account Deficits - IIF

As countries worldwide are forced to spend unprecedented amounts to counter the economic and health effects of COVID-19, fiscal and current account deficits are set to rise globally. Rocky market conditions mean most EM sovereigns will struggle to access external funding, however, leaving the local private sector to pick up the slack, according to a recent report from the Institute of…

7 May 2020

Emerging Market Oil & Gas Operators Could Benefit from Quasi-Sovereign Status

With oil having recently dipped into negative territory and investors turning bearish on emerging markets and other risk assets, you would think the prospects for emerging market oil & gas companies in international capital markets would be slim to nil. But you may be wrong.

6 May 2020

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