John Stopford, portfolio manager of the Investec GSF Global Strategic Income Fund and co-head of the Investec multi-asset team, says 2014 may be a difficult year for corporate credit and a modest one
for emerging markets debt, «but there may be an attractive long - term buying opportunity later in the year.»
Michael T. Henry, As a fixed income portfolio manager at Wellington Management, Michael develops investment strategies
for the Emerging Markets Debt Team.
Not exact matches
The strong dollar was felt widely across commodity
markets and the
emerging economies that are now borrowing record amounts of
debt in the U.S. currency — $ 3.7 trillion according to the latest figures this week from the Bank
for International Settlements.
In the short - term, however, this increased leverage may actually be bullish
for junk bonds, corporate bonds,
emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.
Although there may not be a bond bubble, with investors starved
for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier
debt securities like junk bonds and
emerging market debt.
There's no new theme to it, just more riffs on the old one of a self - reinforcing spiral of slower growth in China crushing the economies of its raw material suppliers, while an appreciating dollar makes it ever harder
for emerging market companies and governments to repay the
debts they gleefully took on when the Federal Reserve was giving away dollars
for free.
Overall, this augurs
for globally diverse fixed income exposures, including a preference
for up - in - quality credit exposures and an allocation to
emerging market debt for investors who can tolerate the added risk.
With lower external
debt than other regions, Asian economies have been less vulnerable to a strengthening U.S. dollar, which remains one of the main risks to our outlook
for emerging markets.
As CNBC notes, Roubini predicted in May that four elements — stalling growth in the U.S.,
debt troubles in Europe, a slowdown in
emerging markets, particularly China, and military conflict in Iran — would come together in to create a storm
for the global economy in 2013.
See,
for example, Kofanova S, A Walker and E Hatzvi (2015), «US Dollar
Debt of
Emerging Market Firms», RBA Bulletin, December, pp 59 — 69 and Windsor C (2016), «Currency Risk at
Emerging Market Firms», RBA Bulletin, June, pp 49 — 57.
Albright Capital, which invests in distressed
debt as well as private equity, plans to raise another $ 125 million
for its
emerging -
markets fund, according to filings.
Emerging market debt represented by the Bloomberg Barclays Emerging Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging
Emerging market debt represented by the Bloomberg Barclays Emerging Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging ma
market debt represented by the Bloomberg Barclays Emerging Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging mark
debt represented by the Bloomberg Barclays
Emerging Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging
Emerging Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging ma
Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging mark
Debt Index, an unmanaged index that tracks total returns
for externalcurrency - denominated
debt instruments of the emerging mark
debt instruments of the
emerging emerging markets.
For example,
emerging market debt is up over 10 % year - to - date (Bloomberg data).
We assist middle -
market and
emerging growth companies in accessing the dynamic private capital
markets for equity and
debt financing.
The continuing low level of government bond yields has supported the search
for yield that has been evident over the past couple of years, with the spread between yields on US government
debt and yields on both corporate and
emerging market debt remaining around historical lows over the past three months (Box B).
Investor demand
for emerging market (EM)
debt has been strong lately, as the near - term risk of trade wars has faded and income seekers have flocked to the asset class» higher yields.
Liam is our Head of
Emerging Markets Debt, overseeing a global team of EMD portfolio managers and holding ultimate responsibility
for the commercial growth of the EMD business and delivering strong investment performance across our wide range of products.
He worked as an
Emerging Market Debt and Currency Strategist
for AllianceBernstein from 1998 to 2010.
«Many investors are looking
for exposure to
emerging markets, but do not have the risk appetite
for emerging market equities or
emerging market local - currency
debt,» said Fijalkowski.
JP Morgan
Emerging Market Bond Index The JPMorgan Emerging Markets Bond Index Global («EMBI Global») tracks total returns for traded external debt instruments in the emerging markets, and is an expanded version of the JPMorgan
Emerging Market Bond Index The JPMorgan
Emerging Markets Bond Index Global («EMBI Global») tracks total returns for traded external debt instruments in the emerging markets, and is an expanded version of the JPMorgan
Emerging Markets Bond Index Global («EMBI Global») tracks total returns for traded external debt instruments in the emerging markets, and is an expanded version of the JPMorgan
Markets Bond Index Global («EMBI Global») tracks total returns
for traded external
debt instruments in the
emerging markets, and is an expanded version of the JPMorgan
emerging markets, and is an expanded version of the JPMorgan
markets, and is an expanded version of the JPMorgan EMBI +.
For instance, this year through the end of November, EM
debt in USD, as represented by the J.P. Morgan EMBI Global Index (EMBIG), returned 2.77 percent, outperforming EM equities, as measured by the MSCI
Emerging Markets Index.
Some of the recent tactical changes include adjustments to the duration of the three funds in the suite, while maintaining exposure to credit and
emerging market debt for potential income.
Against this background of wide payments imbalances, why have the margins
for risk in corporate and
emerging market debt been so exceptionally low?
The owners of Tops
Markets, with a hefty
debt burden and soft sales causing its losses to nearly double last year, filed
for bankruptcy protection in hopes that it can slash its interest payments and
emerge in more competitive financial shape.
Investment grade corporate bonds and
emerging market debt have benefited from this trend
for most of 2016.
Within the broad EM
debt asset class, U.S. investors looking
for EM bond exposure without explicit currency risk may want to consider dollar - denominated sovereign bonds like the iShares J. P. Morgan USD
Emerging Markets Bond ETF (EMB).
For example,
emerging market debt is up over 10 % year - to - date (Bloomberg data).
He is responsible
for Asia within the
Emerging Market Debt team and is also in charge of creating and maintaining quantitative risk and valuation models.
That's the same
for high yield ETF holdings in
emerging market debt.
Both robo - advisors show a willingness to use an
emerging markets debt ETF
for exposure to that asset class.
Overall, this augurs
for globally diverse fixed income exposures, including a preference
for up - in - quality credit exposures and an allocation to
emerging market debt for investors who can tolerate the added risk.
Naturally, she believes ETFs that hold high - yield corporate bonds,
emerging market sovereign
debt or dividend - paying stocks are all better choices
for long - term investors.
In our opinion, the so - called «spread sectors,» from high - yield bonds to non-agency mortgages and
emerging -
market debt (EMD), currently offer attractive levels of credit, prepayment, and liquidity risks, particularly
for investors who know how to analyze these risks.
Emerging market debt represented by the Bloomberg Barclays Emerging Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging
Emerging market debt represented by the Bloomberg Barclays Emerging Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging ma
market debt represented by the Bloomberg Barclays Emerging Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging mark
debt represented by the Bloomberg Barclays
Emerging Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging
Emerging Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging ma
Market Debt Index, an unmanaged index that tracks total returns for externalcurrency - denominated debt instruments of the emerging mark
Debt Index, an unmanaged index that tracks total returns
for externalcurrency - denominated
debt instruments of the emerging mark
debt instruments of the
emerging emerging markets.
More about Nontraditional Sources of Income Nontraditional sources of income — such as real estate investment trusts (REITs),
emerging market debt, bank loans, master limited partnerships (MLPs), and preferred stock — not only may provide additional opportunities
for diversification, but may offer a way to capture yield
After the bull
market kicked off six years ago, as investors searched
for yield amid low interest rates, they increasingly turned toward fixed income credit sectors, such as high yield, investment grade and
emerging market debt.
With lower external
debt than other regions, Asian economies have been less vulnerable to a strengthening U.S. dollar, which remains one of the main risks to our outlook
for emerging markets.
The fund invests, under normal circumstances, at least 80 % of its net assets plus any borrowings
for investment purposes (measured at the time of purchase)(«Net Assets») in sovereign and corporate
debt securities of issuers in
emerging market countries, denominated in the local currency of such
emerging market countries, and other instruments, including credit linked notes and other investments, with similar economic exposures.
Since that time the
market for local currency
emerging markets debt has soared past $ 1 trillion, while external currency
debt has grown from about $ 200 million to $ 500 million.
Investors now have a choice between both active and passive products that provide access to
emerging market debt, which may be suitable to some investors based on their goals, preferences, and tolerance
for risk.
The new fund is designed to offer financial advisers and institutions the potential
for additional diversification, along with potentially higher returns that can accompany the considerable volatility associated with
emerging markets debt.
He worked as an
Emerging Market Debt and Currency Strategist
for AllianceBernstein from 1998 to 2010.
The portfolio manager looks
for businesses with historically high returns that are trading at cheap multiples
for the Fidelity Frontier
Emerging Markets Fund, but he's also focused on companies that are funded by free cash, as opposed to
debt.
Given its low costs and focus on
emerging -
market debt, MEDIX makes
for a great subcore position in a broader fixed - income portfolio.
In
Emerging - Market Bonds, Political Risk Is a Constant For the last several years, emerging - market bond mutual funds and E.T.F.s have offered better returns than developed - wor
Emerging -
Market Bonds, Political Risk Is a Constant For the last several years, emerging - market bond mutual funds and E.T.F.s have offered better returns than developed - world
Market Bonds, Political Risk Is a Constant
For the last several years,
emerging - market bond mutual funds and E.T.F.s have offered better returns than developed - wor
emerging -
market bond mutual funds and E.T.F.s have offered better returns than developed - world
market bond mutual funds and E.T.F.s have offered better returns than developed - world
debt.
EMD:
Emerging Markets Debt REITs: Real Estate Investment Trust ILBs: Inflation - Linked Bonds MBS: Mortgage - Backed Securities TIPS: Treasury Inflation Protected Securities The example presented is
for illustrative purposes and reflects the current opinions of Wellington Management Global Multi-Asset StrategiesSM team as of the date appearing in this material only.
I decided to write this article this night because I decided to run my bond momentum model — low and behold, it yelled at me that everyone is grabbing
for yield through credit risk, predominantly corporate and
emerging markets, with a special love
for bank
debt closed end funds.
But it's not clear where Smurfit stands in this regard — there are certainly fresh threats to global growth, and
debt overhang will restrain the developed
markets for years to come — on the other hand, Smurfit's now a dominant player,
emerging markets continue to perform well, and Western central banks continue to pump out a tsunami of liquidity to combat
debt deflation.
It makes it cheaper
for overseas companies to pay down their dollar - denominated
debt, and they also reap higher prices
for commodity exports, which is big business in
emerging markets.
Domestic
emerging market bonds - those issued within an
emerging market country - make up about 3/4 of the amount of
debt in the
emerging market bond
markets but because it can be difficult
for a variety of reasons to trade in domestic
emerging bonds,
emerging market bonds held by foreign investors are usually foreign or external
emerging market bonds.