The Turkish lira plunged to record lows against the dollar following its downgrade by Moody’s and S&P, who cited increased political instability as well as geopolitical stresses and turbulence.
In recent years, emerging market (EMLC) (HYEM) ratings have improved considerably due to the strengthening macroeconomic framework as well as years of reforms.
Banks saw a rise in term deposit accounts since the demonetization. As a result, commercial banks sharply reduced their deposit rates.
Due to the expected fall in inflation, the RBI will likely undertake more cuts in the repo rate. These rate cuts will aim to boost consumption.
The demonetization that has been in effect since November 9 is expected to have a negative impact on inflation. Consumer spending activity almost stopped.
The demonetization of the 500 rupee note and the 1,000 rupee note will likely hit the Indian economy hard in the short term.
In her speech at the Jackson Hole Economic Symposium, Fed chair Janet Yellen expressed optimism about another rate hike in the United States.
Regarding gross government debt, emerging markets have positioned themselves better compared to developed markets.
Emerging market economies have bounced back in 2016, delivering strong economic growth with improved fundamentals and better capital management.
Investors with higher risk appetites may want to shift their focuses to emerging market bonds, as most developed market bonds are trading at negative yields.
Emerging market (or EM) bonds (PCY) offer diversified exposure with higher yields compared to their developed market equivalents (IHY).
Donald Trump’s win in the 2016 US presidential election wasn’t good news for Mexico (EWW). The Mexican peso fell more than 10% on November 9, 2016.
Donald Trump’s win in the 2016 US presidential election isn’t good news for Mexico’s economy. Trump’s protectionist intentions could hamper the Mexican economy.
Growth in emerging market (EMLC) (HYEM) and developing economies is projected to increase from 4% in 2015—the lowest since the 2008–09 financial crisis—to 4.3% and 4.7%…
Returns in the emerging markets debt space have so far in 2016 ranked commensurately with risk. More specifically, local debt has been the top performer, with a total return of…
As the chart above shows, flows into emerging markets funds remained positive but diminished considerably from July and August.
Strong investor interest in emerging market debt (EMLC) (HYEM) has continued despite adverse political and economic issues in some countries.
Negative bond yields in Japan and the Eurozone, coupled with very low federal funds rates in the United States, are part of why emerging market bonds and currencies have performed so well in 2016.
Emerging market (or EM) debt (EMLC)(HYEM) has, over the last several years, struggled as an asset class.
Republican presidential candidate Donald Trump stated that he intends to weaken trade links between China and the US, and that he would be likely to introduce trade policies against China.