Tag Archives: Emerging market credit spreads

Selectiveness will be key to navigating between 2019 tailwinds and headwinds.Overall, we think there are reasons for investors to be more optimistic on emerging market (EM) debt in 2019. A Fed pause, a limited rise in US Treasury yields, a weaker US dollar and an eventual US-China trade truce could all be tailwinds for EM debt after poor returns in 2018.Furthermore, monetary and fiscal stimulus should help put a floor on the recent Chinese growth slowdown. Along with some policy relaxation...

In the coming months, we expect that many quality emerging-market investments will be oversold, as investors ‘sell first and ask questions later’.Emerging market (EM) debt has been suffering lately, posting a disappointing performance year-to-date. While we expect that at some point this sell-off will offer compelling opportunities for investors who have the patience to ride out the storm, we still recommend caution as, on a shorter horizon (the coming three months), US Treasury yields could...