Thu, Jul 2, 2015
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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  3. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  4. Hedge funds panic over Greece[more]

    Komfie Manalo, Opalesque Asia: Some investors are in panic mode as Greek Prime Minister Alexis Tsipras announced Sunday night that the banks and the stock market would be closed Monday, said

  5. Alternative investment industry could grow to $13.6tln in five years[more]

    Komfie Manalo, Opalesque Asia: Leading auditing and advisory group PwC said that the global alternative investment industry, which includes hedge funds, private equity and real assets, is set to increase to $13.6tln within the next five years. "Be

 

banner