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Investor Insights

Ashmore: Quantifying EM Sovereign Fair Value

It is tough to beat the long-term risk-adjusted returns of Emerging Markets (EM) sovereign debt. The asset class has consistently delivered steady performance even during poor macroeconomic environments for EM economies. On a forward-looking basis, a simple quantitative analysis demonstrates investors receive six to ten times more spread over US Treasury than the actual default risk embedded in…

19 Feb 2020

BBH: EM Preview for the Week Ahead

Risk-off sentiment intensified last week. Near-term, we think EM is likely to remain under pressure until the full impact of the coronavirus is better known. On top of this, there is broad-based dollar strength. Besides the safe haven flows, the US outlook remains very strong. Taken in conjunction with the recent weak data out of Germany, France, and Japan, it’s clear that the US economy…

10 Feb 2020

EM Local Markets and USD High Yield from Ukraine, Egypt to Remain Attractive in 2020 - Nuveen

In its global investment outlook note titled “20/20 vision: a clearer path for growth” the firm maintains a bullish stance on emerging markets.

4 Feb 2020

Middle East Investor Appetite for Russian Bonds Grows with Latest Bank Deals

In January this year, Emirates NBD became the first Middle Eastern bank to participate with an international bond from Russia, but investors from the region have been increasing their exposure to Russian credits for some time.

4 Feb 2020

AXA Sees Greater Investment Opportunities in EM Green Bonds – But ESG Still Needs Improvement

Emerging market green bond investment opportunities are looking increasingly attractive to global institutional investors – but EM issuers still need to continue improving on the ESG front in order to improve global investor penetration, AXA senior economist Irina Topa-Serry says.

3 Feb 2020

Kenya’s Real Estate Sector Not Heading for a Bubble – Cytonn Investments

Despite a boom in Kenya’s real estate sector in recent years the market is not currently in a bubble, argues a recent report from Cytonn Investments. A bubble is unlikely, the report argues, due to a lack of access to credit, without which unsustainable demand cannot be supported.

31 Jan 2020

BlackRock Fixed Income CIO: Fed’s Policy Statement “Abnormally Normal”

Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income says that while the Fed’s apparent commitment to continued easing and expansion is reassuring, they may look to rein in some of the ‘plentiful’ liquidity pumped into financial markets in recent years.

30 Jan 2020

Yield to Maturity of Individual Securities Key Barometer for Credit Risk – IDFC Mutual Fund

Investors should pay more attention to the yield to maturity (YTM) of individual securities when assessing credit risk in a portfolio, according to a note from Arvind Subramanian, Fund Manager at IDFC Mutual Fund.

30 Jan 2020

Spike in Africa Eurobond Maturities in 2024, 2025 Shouldn’t Overwhelm Sovereign Refinancing – M&G

Despite elevated idiosyncratic risk and concerns around emerging market sentiment more broadly, a spike in African Eurobond maturities in 2024 and 2025 is unlikely to overwhelm the sovereigns’ ability to refinance their bonds given advances in active debt management and a positive track record of repayment, according to M&G Investments.

29 Jan 2020

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

The spread of the coronavirus continues and is likely to weigh on risk assets and EM. Most markets in Emerging Asia are closed for all or part of this week due to the Lunar New Year holiday. China has extended the holiday until February 2 as it struggles to contain the virus. The Asian region is just starting to recover from the global trade tensions, and now it must cope with what is likely to…

27 Jan 2020

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