Global
Relationship Between Stocks & Bonds is Not Broken – MSCI
As the severity of the economic disruption wrought by the COVID-19 pandemic ensued, both bonds and stocks alike took a beating, raising questions about the historic inverse relationship between the two asset classes.
2 Apr 2020
ESG-Linked Issuance Rebounds as Panic Subsides, Led by Developed Market Economies
While new ESG-linked issuance in emerging markets is largely limited to DFIs for now, a number of new deals that closed over the past week offers an encouraging sign of a market revival, according to IHS Markit.
1 Apr 2020
As Monetary Policy Reaches its Limits, Where Do Policymakers Go Next?
While the magnitude of the challenge facing monetary policy makers has escalated swiftly in recent weeks, the underlying setting – growth driven largely by cheap money, and overreliance on low rates – has been in place for some time, and many market observers have been asking the painful but necessary question: once central banks hit a wall of zero rates, where do we go from there?
31 Mar 2020
“Triple Shock” of Pandemic, Commodity Plunge and Capital Outflows Shakes Emerging Markets
Emerging economies are in for a rough ride as the crisis escalates, ratings agencies warn, but growth is likely to rebound in 2021 if the pandemic subsides.
31 Mar 2020
BBH: EM Preview for the Week Ahead
EM went along for the ride last week as risk sentiment got a huge boost from the Fed’s QE and the passage of the US Senate-led stimulus bill. This week, improved China PMI readings for March may help the risk rally extend for a bit. Yet the economic toll will still be large as more and more countries go into lockdown. When the scope of the downturn becomes better known, we believe risk sentiment…
30 Mar 2020
EM Telecoms During the Crisis: A Different Kind of Going Viral
When most other sectors face an unprecedented crisis, the telecoms industry could stand to benefit as demand for digital communciations soars on the back of requirements for self-isolation and quarantines across most of the world's nations, argues Manulife's Richard Segal, but the ability of telecoms to prosper in challenging times varies significantly from market to market.
27 Mar 2020
US Fed and Senate Double Whammy Response Lifts markets, EMs to Follow Suit
Promise of unlimited monetary stimulus and signs of a tentative USD2tn stimulus package in the US Senate offered some much-needed comfort to global markets, with EMs receiving an additional boost from their governments through promises of additional fiscal stimulus and quantitative easing.
26 Mar 2020
Ashmore: Assessing the EM Policy Reaction-Function in the Context of a COVID-19 Induced Recession
Ashmore's Deputy Head of Research Gustavo Medeiros assesses the policy reactions in emerging and developed world to the COVID19 pandemic and its impact on the global economy, concluding that EMs - lead by a gradual recovery in China and intra-EM trade - will regain strength and resilience as the crisis subsides.
25 Mar 2020
Liquidity Concerns – Not Solvency – Driving Fixed-Income Pricing - Eaton Vance
As demand for dollars worldwide soars, cracks and dislocations are appearing in various markets including fixed income, which has seen a huge liquidity drain despite largely unchanged fundamentals.
25 Mar 2020
Emerging Market Corporate Defaults Unlikely to Reach 2008/9 Levels - Bank of Singapore
Investors concerned about a global financial crisis-style blowout in emerging market corporate spreads may be pleasantly surprised as a number of technical and fundamental factors leave the asset class in a much stronger position than was the case over a decade ago, according to Bank of Singapore analysts.
25 Mar 2020