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...

The structural change in the Chinese’ role, the cyclical rebound in the Japanese economy and the lowering commodity prices are key factors sustaining ASEAN countries performance relative to other Emerging Markets.

Growth resilient stocks continue to perform well although valuation is now stretched. While we are tempted to switch out of expensive defensive growth into cheap cyclical sectors, investors are still willing to pay more for high quality sustainable growth as the global economy is set to grow well below its potential. Since March 2009, the bottom of the...

The traditional path for emerging markets provides a good guide for frontier external debt markets, of which Africa features prominently, a diversification play with low correlation to other fixed income indices. In a global economy characterized by improving growth, lower systemic risk and still abundant liquidity, the search for spread will continue to...

Latin America presents an attractive investment case in 2013 Latin America is expected to post yet another year of steady, albeit stronger, growth in 2013, with limited inflation pressure. Supportive factors to all EM next year include the improving global growth and risk backdrop, with Latam also benefiting from a track record of strong underlying...