Insights

A revenue winter

June 3, 2019

While trade wars are getting all the news lately, there are other developments investors should be paying attention to. The trade-weighted dollar has surged by nearly 10% this year, as the aforementioned trade war issues and concerns over global growth have led to safety-flows into USD-assets. In the past, similar instances have been problematic for […]

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Sticking with hard currency bonds

June 3, 2019

While EM debt been on a strong run since last September, the local currency bonds have been lagging their hard currency peers since this past March. We expect this divergence to continue for two reasons. Firstly, the weakness in oil prices and EM trade flows should continue to weigh on global FX reserves. This should […]

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Re-fixing the Yuan

June 3, 2019

One of the biggest losers from the recent flare up in trade tensions between the U.S. and China was the Yuan. In response, the PBOC lowered its official Yuan mid-point to USD 6.8649 to minimize further currency weakness. However, this has led to a widening spread between the onshore (CNY) and offshore (CNH) exchange rate, […]

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Buying safer assets

June 3, 2019

Despite a strong recovery in stock prices this year, inflows into equity ETFs and mutual funds have remained uneven. At the same time, inflows into products that track bonds have been resilient. This suggests that weak global growth, trade war concerns, and worries about earnings have weighed on investor sentiments, even as the S&P 500 […]

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