Insights


This Week's Strategy Espresso

ETF Education

Hunt for yield continues in EM Debt space

9 December 2019

Heading into 2020, we continue to expect emerging market (EM) local currency debt to perform well relative to other strategies. With a potential phase one trade deal on the horizon, a mix of supportive factors could help to drive the asset class, including:

  • Economic growth differential as EM countries are expected to  rebound at 4.6% growth in 2020 versus 1.7% for developed economies.
  • Accommodative global central bank policies pump liquidity back into the system
  • Weaker inflation leads to increased real yield differential, supporting   investor flows.
  • EM currencies undervalued versus the USD – currently c. 5.6% undervalued for the Bloomberg Barclays EM Local Currency Liquid Government Index.1

Continue reading this week's Espresso

 


Publications

2020 Global Market Outlook

We see global economic expansion continuing into 2020, led by the United States, with a potential boost from greater clarity in Europe. Here’s our outlook and the key signposts we’re watching in the coming year.


More articles

UK Election Outlook: Exit from the Impasse?

Should investors start positioning for a Conservative majority on the morning of 13 December?