Funds

Latin American (Latam) markets gather all the necessary features for credit exposure to be carried forward. Latin American economic activity fell short of expectations in Q1, ours and most of the market’s. Growth in non-Brazil Latam cooled faster than expected, with Brazil’s forecast pickup too weak to offset the slowdown elsewhere. Mexico disappointed as...

As QE in Japan weakens the attractiveness of JGBs, Japanese investors are likely to turn increasingly to EM local currency sovereign bonds for higher yields and diversification. The Bank of Japan’s massive monetary easing will likely fuel a JGB supply-demand imbalance, driving Japanese investors into higher yielding assets. EM local currency bonds may prove...

The Investment Grade (IG) corporate debt market gets more expensive again, due to inevitable and resilient inflows from the institutional investor base. Back in November 2012 and after record performance over last 12 months (from Dec. 2011: +12.3% in the US and +14.54% in the EZ), we were calling for a cautious approach going forward on Investment Grade...

Having reached new highs on main developed markets this year, investors should now consider diversification at least to protect realized performance. In this context, we draw attention to the Australian credit market. It is always smart to have a defensive play, even if one’s general sentiment is bullish. Australia remains a member of an increasingly elitist...

As markets start wondering about the timing of QE tapering and simultaneously banks need to deleverage, we believe qualified investors should take a closer look at bank loans. It is fair to say that Central Bankers have been driving markets up so far this year with extended and massive QE policies.One of the consequences of QE is the artificially low rate...