Thu, Apr 26, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

US and Euro bond markets to offer safe haven status again if emerging market unrest persists - RWC Partners

Thursday, March 03, 2011
Opalesque Industry Update - Stuart Frost, Co-Head of the Fixed Income, Rate & Currency Team at RWC Partners comments on the impact of recent events in North Africa on bond markets globally:

“Further unrest in emerging markets will inevitably see further flights of capital into American, UK and European markets looking for long term stability, despite the credit crisis. That may continue to underpin non-emerging equity markets on any sell off and indeed may help bond markets stabilise via safe haven pressure.

“Over the past 10 years it has become fashionable to talk about emerging markets alongside more mature markets, but given recent events in the Middle East a general market reassessment of emerging market investments is inevitable in the next six months.

“It is a fact of life that many emerging market currencies have come from an extremely undervalued position over the past five years; to the point that many emerging market countries have become uncomfortable with their currency strength. In the United States we have seen the opposite with a weakened US Dollar at all time lows against some currencies. That should be a future positive for US exports, to the detriment of emerging market export orientated nations. Many emerging market nations are on the march upwards, but set backs are inevitable and commodity market strength is not always a positive when it starts to create inflationary pressures at basic levels, such as food supply.

“As things pick up in countries most affected by the credit crash it is only natural that some will call for a resumption of a more normalised rate cycle, but if events continue to turn against emerging market investments, then it is logical that the US and European bond markets will once again offer a safe haven status and yields could stabalise or fall once again. In currencies, strength in Swiss Francs, Sterling, Japanese yen and the euro would be logical on the back of emerging market outflows." Corporate website: Source

- FG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its