Sat, Feb 13, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Upside in emerging market debt despite uncertainty

Friday, August 30, 2013

amb
John Peta
Benedicte Gravrand, Opalesque Geneva:

There are reasons for investing in emerging market debt. For a start, emerging market (EM) fundamentals are stronger than developed markets'. Many of them abandoned the currency pegs and floated their currencies in the past years, allowing them to accumulate foreign currency reserves. This helped them cope with 2008, and since then, those economies have gained more shares in the global equity and bond markets. EM credit ratings have improved these last few years, reflecting improving fundamentals.

"Over 45 emerging market countries are now rated investment grade, equating to over 50% of the universe," says HSBC Global Asset Management in a report on EM debt. HSBC expects EM sovereign upgrades to continue to exceed downgrades.

However, now there may be some uncertainty as what the impact of the forthcoming Fed’s QE tapering will have on EM debt. But Fitch, the ratings agency, "believes that an improvement in credit fundamentals over the last decade should make emerging markets more resilient to a liquidity shock than in the past, making a widespread wave of crises unlikely," reports MNI.

EM debt is still vulnerabl......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise

  2. Investing - Some hedge funds want to make subprime auto loans next big short, 11 hedge funds that are “all in” on the FANG stocks, Hedge funds short London luxury homes, Cynet raises $7 million from U.S. hedge fund[more]

    Some hedge funds want to make subprime auto loans next big short From Bloomberg.com: A group of hedge funds, convinced they have found the next Big Short, are looking to bet against bonds backed by subprime auto loans. Good luck finding a bank willing to do the trade. Money manage

  3. Investing - Hedge funds see selloff in European bank stocks as buying opportunity[more]

    From WSJ.com: The massive selloff in European bank stocks and bonds is overdone and presents a “phenomenal” buying opportunity, according to some of Europe’s top hedge-fund managers. Despite a 28% slump in European bank stocks this year, including a 38% fall in Deutsche Bank AG and a 34% drop in Soc

  4. Legal - Carlyle accused of fraud by ex-employee, Hedge funds win CDS breach of contract suit against Deutsche Bank, Hedge fund asks for OK on $27.5m Goldman CDO deal, SFO examines Barclays hedge fund profits[more]

    Carlyle accused of fraud by ex-employee From AI-CIO.com: A former portfolio manager claims he was fired for blowing the whistle on “crazy” and “irresponsible” investments. Carlyle Group has been sued by a former portfolio manager for one of its hedge funds, who accused the firm of “knowi

  5. Illiquid assets are all the rage for hedge funds[more]

    From Valuewalk.com: …Institutional investors are increasingly turning to illiquid assets and active management strategies to combat macroeconomic trends, anticipated market volatility and diverging monetary policy, according to a new survey by Blackrock. And this week, Bloomberg has reported that at