Traditional fixed income risk assets, such as Emerging Markets (EM) and High Yield (HY), rallied over the past five trading days, shrugging off an escalation of the trade tensions between the US and China. The world’s No. 1 economy announced plans to set tariffs on an additional US$200bn worth of Chinese goods, adding to the $34bn that came into effect on Friday. The almost 200-page list of goo…Read the article
Guest contributor – Tristan Hanson (Fund Manager, M&G Multi-Asset Team)
The flattening of the US yield curve has inspired much commentary and hand-wringing in certain quarters lately. The concern is overdone.
Looking back at perio…Read the article
Today’s US election result has several implications for emerging markets. At a first glance, the outcome is clearly negative, given the potential downside risks from increased trade protectionism, anti-immigration measures, large fiscal expansion and steepening of the US yield curve and uncertainty in terms of foreign policy.
These risks are already being reflected in asset prices. Since the re…Read the article
As Donald Trump delivers his victory speech, and is set to become America’s 45th President, here’s a quick update on what we’re seeing in bond and currency markets since you went to bed. For bonds, the impact has so far been relatively modest; it’s been equity markets where moves have been stronger (the Nikkei is down 5%). Last night the Mexican peso was the barometer of the likely outcome, a…Read the article