Seven reasons why the time is right to buy EMD
There are two sides to every sell-off. With emerging market debt (EMD) posting its weakest H1 return since the height of the global financial crisis, investors must decide whether to approach this sell-off as a setback or a shopping spree. On the one hand, EMD is down 21.76% year to date¹, having borne the brunt […]
My bandwidth brings all the users to the yard
Over the past 20 years, in line with the proliferation of the internet, net neutrality has been a hot topic of conversation within the telecoms sector. Of late, we have found the debate has resurfaced given the growing importance of the internet to our daily lives, coupled with the ever-increasing levels of investment required for […]
A source of alpha and solution to supply-chain logjams?
Short-term loans to facilitate physical cross-border transactions can reconcile the divergent needs of an exporter and importer. Trade finance has a critical role to play in addressing snags in global supply chains and ensuring that vital commodities continue to flow. China is heavily reliant on soybeans, which are used as protein feed for hogs and […]
Fiorino: Is there light at the end of the AT1 tunnel?
Novel bank capital instruments introduced as loss-buffers in the wake of the global financial crisis (GFC) may have hit a wall as European regulators contemplate new ways to shore-up the monetary system. Indeed, proposals flagged by the European Central Bank (ECB) this April could push the much-misunderstood Additional Tier 1 (AT1) securities – established as […]
Global Emerging Markets, H2 2022
Outlook
India’s real estate resurgence in eight charts
Residential sales in India’s seven largest cities hit their highest levels last year since 2014. Factors behind the upturn in the property cycle include industry consolidation, a fall in available inventory and an increase in regulatory oversight. On a recent trip to India after more than two years away I was struck by how one […]
EM debt: The cruellest cut
Fast reading Historically, EMD is one of the few fixed income market segments to have consistently delivered a positive yield with some cushion to movements in core rates. Even so, issuers with comparable credit metrics generally receive a lower rating per the standard agencies than their developed market peers. This contributes to the spread premium […]
360°: Dissonance, dampening and diversification
Fast reading Market value: A first-quarter selloff has improved value and offered more upside. In public credit the US outperformed Europe, while energy benefited but telecoms and broadcasting suffered. Economic outlook: With the war in Ukraine inflicting a stagflationary shock on the global economy, central banks risk being caught between a rock and a hard […]
Spectrum: Investing into the decarbonisation paradox
Aluminium production is a highly polluting process which contributes 2% of global carbon emissions. The metal has tremendous potential to aid the transition towards clean energy but demand looks set to outstrip supply in coming decades. Technological innovation and increased recycling has the potential to reduce the carbon footprint of aluminium producers but more needs […]
EM debt: The where and the why
Fast reading Latin America – How decades of patience have delivered progress Africa – Why the path to the future is paved with green The Middle East – A democratic deficit vs fiscal strength Asia – Smooth sailing with China at the helm? Federated Hermes Emerging Markets Debt Regional Assessments Download
