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Corporate Bond Meltdown Could Expose Debt Vulnerabilities in Emerging Markets Despite Coordinated Easing

The ongoing sell-off could raise fears over a global corporate debt bubble, with EM companies particularly vulnerable as uncertainty over the extent and timeline of the COVID19 epidemic persists, IIF analysis explain in a recent research update.

16 Mar 2020

Crude Awakening: Oil Producers with Weak Balance Sheets Most Vulnerable to New Price Reality

While analysts have been hesitant to adjust their long-term expectations on oil prices amidst some of the near-term volatility seen in recent weeks, fund managers at M&G are already warning that a scenario involving average oil prices below USD40 per barrel in 2020 would see the prospects for emerging market oil producers change dramatically.

16 Mar 2020

Green Bonds Offer Marginally Lower Yields on Average – MSCI

Green bonds tend to offer 0-2bp lower yield than their conventional counterparts, according to research from MSCI. This is more pronounced in bonds issued by corporates with a higher overall ESG rating.

13 Mar 2020

CEE, ASEAN Markets Win Out on Low Oil Exposure and Net Importer Status

Oil importers and sovereigns with low exposure to oil and gas are winning out as oil prices tumble on the back of an escalating feud between Saudi Arabia and Russia, which threatens to flood global markets with cheap crude.

11 Mar 2020

Fed Injects Further USD50bn Into Repo Markets to Stem Biggest Market Drop in a Decade

The US Federal Reserve bolstered its repo taps overnight in an attempt to boost market liquidity a day after the MSCI global index lost more than 7% and government bond yields collapsed, the biggest daily drop since the financial crisis.

10 Mar 2020

Double Blow to Oil Prices as Demand Plummets, Supplies Surge amid OPEC+ Breakdown

The “unthinkable” has happened – and has caught the market unaware, says MUFG in a note.

10 Mar 2020

Data Shows Emerging Market Trade Benefitted Despite Rise in Protectionist Rhetoric – Ashmore Group

New data suggests intra-emerging market trade grew well above the long-term trend since 2016 despite intensifying global protectionist currents and trade wars.

9 Mar 2020

BBH: EM Preview for the Week Ahead

Risk-off sentiment continues to build as the coronavirus spreads and so EM is likely to remain under pressure. Oil prices are down sharply after Saudi Arabia and Russia were unable to agree on output cuts, leading the former to flood the market with low cost oil. There will be a lot of collateral damage, including EM producers, DM producers, and US shale producers.

9 Mar 2020

Supply and Demand Shocks From COVID19 Could Push Global Economy into Recession

The markets might have priced in a 1H supply shock, but not 10-20% global infection rates, argue RenCap’s analysts, while Moody’s once again has lowered its global growth forecast for 2020.

9 Mar 2020

As Fear Takes Over, Markets Should Take Refuge in Buying Opportunities that Epidemics Create – William Blair

The last week of February saw markets end at levels not seen since May 2019 and some of the largest asset sell-offs in nearly 10 years. But while it’s always difficult to predict market behaviour, participants should gain some comfort from the fact that market reactions to previous epidemics have been relatively short-lived and generally create more buying opportunities, say emerging market debt…

6 Mar 2020

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