Should you buy sterling credit as an ECB-hedge?
ECB intervention has pushed European corporate bond yields down to unrealistic levels. It may therefore be a good idea to buy some sterling credit, regardless of how the Brexit saga will play out.
Corporate Bonds
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Investors pile into EMD trackers
Emerging market debt ETFs saw record net inflows of $5.8bn over the third quarter globally, according to Blackrock. Total inflows this year have already beaten the previous full-year record set in 2012.
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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.
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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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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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Is the Fed creating opportunity or danger in US credit?
The split among the members of the Federal Open Market Committee about when to raise rates, as revealed by the meeting minutes, presents some fresh food for thought for investors.
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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.
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How compelling is Brazil’s fixed income story?
Amid the political turmoil, Brazil has done well for fixed income investors, but questions remain around further volatility.
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Investors flock to corporate bonds as markets recover
Corporate bond funds are strongly back in fashion after a long streak of outflows, as investor confidence inched up in March and the ECB announced the inclusion of corporate bonds in its QE programme. Emerging market debt even witnessed the biggest net monthly inflows in more than two years, according to Morningstar’s latest fund flows…
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Emerging market debt – a reversal of fortunes
Investors are fleeing from emerging market debt, and optimism for any recovery in the near term is low, particularly for local currency government bonds.