Sat, Mar 28, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner