Investors flock to EM debt in yield-starved world
With most global fixed income markets priced for perfection, investors are flocking to the one yield hold-out left: emerging market debt. But are investors really being compensated for the risk?
Latest news
-
-
Has the Trump trade been trumped?
Investors have been hiking their allocations to risky assets since Donald Trump was elected US president exactly a year ago. But has Trump had any role in driving these flows?
-
US equity fund managers pin hopes on Trump
US equity fund managers believe the S&P 500 can continue to add to a 26% rise over the past year. But barring good news to come out of Washington, there is little to cheer about for expensive US equities.
-
Investors switch from US high-yield to emerging markets
It has been a consensus trade for yield hunters this year: buying emerging market debt. A net €54bn has already flown into the asset class this year. This contrasts with recent outflows from high-yield bond funds.
-
Mifid II will expose complacent funds
Mifid II will be good for investors because it requires asset managers to ensure their funds remain fit for purpose, says Morningstar.
-
Generali Investment rebrands Europe mid cap fund
Generali Investments has changed the name of its Euro Equity Mid Cap fund, to reflect the rising popularity of theme-based investing.
-
ANALYSIS: Should investors buy the Catalonia dip?
Dips to buy on have become ever scarcer in the QE-led era. Does the big performance gap between Spanish and other European equities, that has emerged thanks to the political turmoil in Catalonia, present investors with a great opportunity now?
-
No surprises from Draghi: ECB halves asset purchases to €30bn
The ECB will cut the size of its monthly asset purchases in half from January next year, ECB-president Mario Draghi announced on Thursday. Bond and equity markets as well as the euro hardly responded to the announcement.
-
German investors trade return for safety
A poll from German asset manager Union Investment has found that German institutional investors are more than three times as risk-averse as their peers in neighbouring countries, with 72% of Germans considering ‘safety’ the most important criterion when making investment decisions.
-
Alessandro Viviani: Beware of pure stockpickers
Alessandro Viviani of Old Mutual Wealth Italy explains why he is sceptical of managers who claim they are pure stockpickers – and how he his trying to tempt his client’s out of their complete risk aversion.
-
How to make money from volatility trading
Volatility is inevitably going to rise from its current all-time low. But that doesn’t necessarily make it a good idea to buy the VIX, the index that tracks the volatility of the S&P 500. There are other ways to make money from volatility trading, however.
-
Trend Setters
Good ESG practice is increasing in emerging markets making the sector a better investment prospect, says Gonzalo Pángaro of T.Rowe Price