Global
Strong US data doesn’t disqualify other key risks, EM analysts, PMs warn
Stronger jobs growth data out of America sent US equities to all-time highs earlier this week, with some anticipating a more aggressive timetable for a US interest rate hike. EM analysts and portfolio managers caution that other significant risks are present and could complicate such a move.
12 Jul 2016
EM vs. US Corporate Bonds: Role Reversal?
EM high yield (HY) corporate bonds have outperformed US HY corporate bonds this year and default rates are significantly lower, particularly now, but also over the cycle.
7 Jul 2016
EM corporates face debt burdens despite no expansion of leverage
EM corporate debt levels remain high, but unlikely to grow significantly. There is a substantial amount of corporate debt that will require refinancing over the next two years, which could be complicated by the actions of the Fed, but many EMs have sufficient liquidity to enable local corporates to access funding internally to finance their burdens.
7 Jul 2016
BRIC And Mortar: Recent Challenges Aside, Opportunities Abound
Emerging Markets (EM) equities continue to be an exciting area of opportunity in 2016, even though performance overall has been challenging over the past 5 years. The long-term case for EM equities, which is broadly similar to that of EM debt, remains intact and, if anything, is now stronger given the relatively attractive valuations seen in EM equity markets.
5 Jul 2016
Could lower rates spell higher EM bond issuance?
Slow global growth, combined with uncertainty partially caused by Brexit has increased the likelihood of central banks across emerging and developed markets loosening monetary policy. The move could lead to a spate of bond issuances from the EM sphere in some cases.
4 Jul 2016
Commodities a top influencer on EM performance
Emerging markets are clearly susceptible to factors like a US Federal Reserve interest rate hike and Brexit, but they are most vulnerable to fluctuating commodity prices. Although exports have seen their currencies strengthen and bond yields fall on rising commodity prices, interestingly, EM commodity importers have not yet felt the negative effects of higher prices.
28 Jun 2016
Ashmore: Brexit shows markets totally underestimate DM risks
The spill-over of post-Brexit market pandemonium was fairly minimal in EMs with the exception of some Eastern European countries like Poland and Hungary. But above all, recent market activity shows investors generally underestimate – and thus aren’t compensated for taking – risks in developed markets, according to a recent note from Ashmore Investment Management.
28 Jun 2016
Central Banks: How Low Can You Go?
Denmark, Sweden, the Eurozone, Switzerland and Japan. The Central Banks of these countries, listed in chronological order, are the pioneers of negative interest rates. Under conventional monetary policy, banks earn income (interest) from cash reserves parked at the Central Bank. Under negative interest rates, banks are penalized and charged a fee for holding cash.
23 Jun 2016
EM debt trading on the rise
Emerging market debt trading volumes have surpassed the previous year’s figures on an improving risk sentiment amongst investors. Brazil in particular saw its Eurobonds being widely traded as yield hungry investors took advantage of the country’s recent economic situation.
17 Jun 2016
Emerging Markets: A Brief Chronicle Of The Asset Class
The progression from international investing to the creation of a specific emerging markets investment category actually evolved over a long period of time and reflects the interesting evolution of global investing in general.
16 Jun 2016