emerging markets

The Case For Frontier Debt: A Growth Story

Union Bancaire Priveé (UBP) | Fixed-income frontier markets have seen significant growth in both importance and liquidity over the past decade. While still mainly thought of as part of global EM investments, frontier markets have “grown up” and deserve to be considered separately.

The fundamental outlook for Emerging Marketsis not as negative as perceived.

Emerging Markets Refinancing Cost: Reality Is Better Than Perception

The rapid rise in US Treasury yields has led to concerns about the fundamental outlook for emerging markets (EM). In particular, investors fear that higher risk-free yields will translate into unsustainably high borrowing costs for EM companies. While analysts from Julius Baer acknowledge the headwind for the developing world, they also believe that perception is generally more negative than reality.

Equities vs bonds: buy real returns

The Market after the Summer: The Emerging Epicentre of a Crisis

I. de la Torre and L. Torralba (Arcano Partners) | The economist Dornbusch says that “crises take long to arrive than you can possibly imagine, but when they do come, they happen faster than you can possibly imagine”. The events that have affected the emerging countries this summer have proven Dornbusch was right.

emerging markets are investor's Achilles heel those days

Emerging Markets: Ever more in doubt

Miguel Navascués | Emerging markets continue seething and carry with them ever less confidence. The latest sign is that the flight of capital has sought refuge in US bonds (and in Wall Street, a new record), among other destinations, and has reduced the yield curve to a minimum of many years of 0.23%.

The fundamental outlook for Emerging Marketsis not as negative as perceived.

August 2018 Risks (III): The Different Concerns Of Emerging Markets

Intermoney | Other risks to which we must pay attention are those arising from emerging markets. In this case, one should not focus only on one country, as there are numerous fronts open. For example, the latest update to the IMF forecasts cut the growth forecasts for Argentina and Brazil, stressing the more difficult finanacial conditions and the need for adjustments to the Argentinian economy while, in the case of Brazil, it stressed the effect of strikes and political instability.

Emerging markets show resilience to volatility

Emerging Markets: Standing Up To Higher Volatility

During the second most significant repricing in U.S. Treasury bond yields since 2013, emerging markets debt, especially local currency bonds, has so far significantly outperformed equity, oil and U.S. Treasury beta. PIMCO’s analysts believe this resilience in EM reflects the resolution of most balance-of-payments issues over the past few years.

Emerging markets

Emerging Markets Shielded With Capital Inflows In 2017

Emerging Markets capital inflows are slowing down only modestly, offering some protection in case of large outflows. Capital inflows to EMs are expected to slow down in 2017, although Manolis Davradakis at AXA IM does not believe they would fall off a cliff as in 2013-2015.

BRICs breaking

It Is Time To Break Up The BRICS

BoAML | One of the most popular ideas in emerging markets economics is grouping Brazil, Russia, India and China together. Here we argue that grouping these very different economies together for economic forecasting was never very useful in the first place. The only thing they have in common is size. The recent divergence in the group makes it even less useful.

MSCI Emerging Markets turns 30.

Emerging Markets: Good-Bye Crisis, Hello Bubble?

BoAML | After the break we maintain our pre-summer bullishness on EM and think an EM bubble is possible by next year given DM policies and improving EM fundamentals. That said, we would wait for the ongoing correction to run its course before adding.

Emerging Markets Trade Engine Has Lost Power

AXA IM | International trade volume1 is not expanding as fast as before the Global Financial Crisis (GFC). The average annual growth rate in international rate volumes almost halved to 2.4% in 2009-2015 from 5.1% in 2001-2008. For the first time in over four decades, international trade is growing less than world real GDP (the latter recorded at 4.2% in 2001-2008 and 3.3% in 2009-2015).