Investment grade and high yield credit in emerging markets have delivered divergent performance over the summer. Could this trend reverse, or is investor caution warranted in the high yield space?
A relatively benign G20 summit and expectations for easier financial conditions ahead have boosted demand for emerging market debt. However, areas of value can still be found.
Dovish central banks, strong fundamentals and an improved outlook for China suggest that all stars are aligned for emerging markets. How long can the year-to-date rally continue?
Emerging market debt is underpinned by a solid fundamental backdrop, but the local index is at all-time tights. A differentiated approach seems warranted.
Core bond yields have pushed higher since the end of October. Is the move warranted by a shift in the fundamental picture, and where could we go from here?
Emerging market (EM) central banks are following their developed market peers with easier monetary policy. What are the implications for EM debt?
A slew of fundamental developments over the week suggests the macroeconomic backdrop continues to deteriorate, and yet bond markets are still generating strong returns across not only safe havens but also risk assets. Can this momentum persist into Sept.
As an increasing number of high yield corporates run into trouble we question whether the rise in corporate distress is a signal for more caution, or if lower rated credits now look more attractive at improved valuations.
Valuations for high quality credit may seem slightly stretched in the context of outperformance so far this year, but with various catalysts ahead, we believe the asset class will remain in favour.
A new trade announcement from the Trump administration has comprehensively overshadowed the Federal Reserve’s first rate cut since the financial crisis. What impact will the most recent round of tariffs have on the economy and on markets?