Thu, Jan 19, 2017
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 - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised