Bavarian fund buyers move back into absolute return
Even though they continue to have issues with absolute return funds, fund selectors in Munich feel forced to move back into the asset class.
Emerging Markets
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Global debt binge continues apace – IIF
Record-low borrowing costs are continuing to fuel a debt build-up in both developed and emerging markets. Global debt has now reached 327% of GDP, according to the International Institute of Finance (IIF), with EM non-financial corporate debt increasing at the fastest rate.
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Investors prefer short-duration in EM debt
As part of their ongoing search for yield, European investors are intending to increase their exposure to emerging market debt. While ready to take on a bit more volatility, they still shy away from taking on duration exposure in the region.
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Rousseff impeachment end of the road for Brazil contrarians
Wednesday’s vote by the upper house of the Brazilian senate to impeach Dilma Rousseff is being seen as a significant step forward for the country, but could well be the end of the road for contrarian investors.
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Emerging market debt: from devil to darling
Emerging market bonds have undergone a remarkably quick transformation from being one of the least loved asset classes to perhaps the most popular. This has been driven by the relative attractiveness of emerging market debt compared to developed market fixed income, but to what extent have the fundamentals of the asset class actually improved?
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Record inflows for emerging market debt in July
The popularity of bond funds was reinforced by the Brexit vote. While all fixed income asset classes saw net inflows, investors especially flocked to emerging market debt in July, according to fund flows data from Morningstar.
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EM currencies set to strengthen – NN Investment Partners
Emerging market currencies are set to strengthen even further despite the significant appreciation from lows already seen this year, said NN Investment Partners.
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European equity funds in record sell-off
European equity funds experienced their largest ever monthly net outflows in July, beating the previous record set in January 2008, according to Morningstar fund flows data.
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Investors in Barcelona swap duration risk for credit risk
Barcelona’s investors are remarkably unanimous in their fixed income allocation. Almost all of them are overweight short-duration bonds and eight in 10 interviewees are planning to decrease their allocation to long-duration European sovereign debt.
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Emerging market equities: as compelling as they seem?
In August 2015, emerging market equities were in the midst of the most serious market correction since 2008. A year on, investors are more bullish than ever about the asset class. Is this radical change of mood justified?
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European equities lose shine for Catalan fund buyers
Barcelona’s fund buyers had been bullish about European equities almost by default for the past four years. But political instability across Europe has dented their appetite. Global emerging market equities are their new darling.
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Emerging market debt defies outflows trend
In June, emerging market bonds was the only asset class to see an improvement in fund flows from the previous month.