(Bloomberg) -- JPMorgan Asset Management, Van Eck Associates Corp. and Vontobel Asset Management are betting that the billions of dollars pulled from...
-- JPMorgan Asset Management, Van Eck Associates Corp. and Vontobel Asset Management are betting that the billions of dollars pulled from emerging markets will start coming back as US borrowing costs drop.Debt denominated in local currencies should advance the most, they say, as emerging-market central banks look to follow the Federal Reserve’s path. Longer-dated bonds are seen leading the rally.
Growth in the developing world remains strong, according to JPMorgan Chase & Co., which recommended an overweight position in EM local-currency debt last week. By then, the asset class lagged the rally in Treasuries by 68 basis points since late May as US swap markets priced in easier policy, analysts led by Saad Siddiqui wrote.
JPMorgan’s Bareau, who manages about $50 billion in emerging-market fixed income, favors debt from South Africa, where political uncertainty has diminished after a surprise election result in May.Beleaguered Asian currencies stand to gain as the Bank of Japan bucks the global trend, raising interest rates and boosting the yen. The hike sparked an unwinding of carry trades, in which investors borrow in low-yielding currencies like the yen to buy others with high interest rates.
In Mexico, the new legislature — controlled by the ruling party — is passing constitutional changes that critics say will erode the government’s checks and balances. Some money managers are anticipating an even more thorough reallocation of assets to follow after the US elections in November.
Local Currencies Bloomberg Emerging Markets Gramercy Funds Management Van Eck Associates Corp. Central Banks The Federal Reserve Thierry Larose Grant Webster
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.
RBC's US global asset management head sees growth in emerging markets, alternative assetsRoyal Bank of Canada is betting on alternative investments and emerging markets debt and equity to boost its U.S. global asset management business, said new ...
Read more »
RBC’s U.S. global asset management head sees growth in emerging markets, alternative assetsThe U.S. global asset management team has brought in about 75 employees since 2020, and more will be added, Donald Sanya said, without specifying how many
Read more »
Brookfield Asset Management considers moving head office to U.S. to qualify for stock indexesThe Toronto-based asset manager floated a series of changes, which are still under consideration, to investors at a presentation in New York on Tuesday
Read more »
Paul Harris’ Top Picks for September 3, 2024Top picks from Paul Harris, partner and portfolio manager, Harris Douglas Asset Management
Read more »
Brookfield’s Hyler Sees Thaw in Real Estate After Two-Year SlumpBrookfield Asset Management said the real estate market is rebounding amid improved economic conditions.
Read more »
Rebecca Teltscher’s Top Picks for September 5, 2024Top picks from Rebecca Teltscher, portfolio manager, Newhaven Asset Management
Read more »