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 […]
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 […]
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
ESG Materiality Q2 2022
How the GEMs strategy is positioned to benefit from transition tailwinds Engagement and carbon footprint update Case study: WEG Case study: Credicorp ESG Materiality Newsletter Q2 2022 Download Share: Risk profile The views and opinions contained herein are those of the author and may not necessarily represent views expressed or reflected in other communications. This […]
Equities tumble as inflation reality bites
Market snapshot
Recession fears grow as central banks step up inflation fight
Market snapshot
Take note: Finding opportunity in mispriced corporate hybrids
Fast reading For non-financial corporate hybrids, fundamentals still matter. The main driver of sub-senior spread is extension risk, as coupon deferral risk is structurally low and early call risk is often manageable. Yet extension risk is often mispriced during market sell-off, creating structural alpha. We are buyers of extension risk premium when it exceeds >10% […]
