(Bloomberg) -- Top-performing emerging-market bond managers are recalibrating positions as the most anticipated US interest rate cut in decades brings fresh ...
-- Top-performing emerging-market bond managers are recalibrating positions as the most anticipated US interest rate cut in decades brings fresh impetus to an asset class buffeted by nearly $15 billion in outflows this year.Turkey Plans Istanbul Taxi Surge to Tackle Complaints
Emerging markets have been mired by volatility as global economic uncertainty and regional conflicts roil buoyant forecasts. A gauge of EM equities has gained about 11% in the past 12 months, lagging a 26% rally for the S&P 500 Index. Most recently, investors have been left scrambling following aplunge in Mexico’s peso and wild swings in Brazil’s real amid a mix of local woes and the unwinding of global carry trade positions.
Local markets have been “quite a strong performing trade strategy even against the backdrop of an appreciating dollar,” said Dhawan, who favors local bonds and currencies in Turkey and South Africa, as well as receiving long-term rates in Latin America. “If you’re well diversified within EMFX, it’s been quite a profitable trade.”
“As long as things are going in the right direction in terms of reforms by the government,” he said. “There’s still a lot of scope for returns and for spreads to compress.” “EM is just one of those places which I think is rich with opportunities, but you don’t want to be last to the game,” Dhawan said. “You have to move a little bit ahead of the Fed on this and start reallocating your portfolios.”In Brazil, the market is watching for a second-quarter GDP print that should confirm robust expansion of the economy.
Germans in the two states of Thuringia and Saxony voted in regional elections on the weekend, with exit polls showing Monday that a far-right political party has secured its first election victory since World War II.Tunisian police arrested presidential candidate Ayachi Zammel on Monday, a member of his campaign told Reuters, amid growing fears among rights groups and the opposition that prominent rivals to President Kais Saied will be excluded from the race.
Emerging Markets Bloomberg Pramol Dhawan Local Markets Pacific Investment Management Fed Global Economic Uncertainty Grantham Mayo Van Otterloo & Co.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. likely to avoid recession but could face dire fiscal picture, PIMCO’s Ivascyn warnsA recent sell-off in stocks and a rally in safer U.S. government bonds reflected weaker economic data, which could increase the probability of a recession over the next 12 months
Read more »
PIMCO's Ivascyn says US likely to avoid recession but warns of dire fiscal pictureThe U.S. economy is still on track for a soft landing despite signs of further weakening, but the country's deteriorating fiscal profile is prompting U.S...
Read more »
Allianz Profit Rises on Insurance Business as Pimco Sees Inflows(Bloomberg) -- Allianz SE, the owner of bond giant Pacific Investment Management Co., saw second-quarter profit rise on stronger earnings from the life...
Read more »
How to play the defense space now: The PlaybookOngoing geopolitical conflicts continue to escalate in Europe and the Middle East, causing defense budgets for certain countries to increase. With that...
Read more »
Trump, Back In Battleground Pennsylvania, Offers The Same Economic PlaybookLiz Skalka is a political reporter at HuffPost. She previously covered politics in the Midwest. Follow her on Twitter lizskalka.
Read more »
Kamala Harris’s campaign of ‘joy’ borrows from Trump’s playbookIn calling opponents names, questioning the courts and comparing crowd sizes, Democrats show a willingness to adopt the tactics of the man they have long condemned
Read more »