With Trump’s perceived warmth toward Russian President Vladimir Putin, the possibility of Russian economic sanctions being removed has emerged.
Investors looking for opportunities in fallen angel bonds can look at the VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL).
Hungary’s credit upgrades to “investment-grade” (FLTR) opened doors for investors tracking low-risk benchmarks.
Although Hungary and Turkey credit spreads were at similar levels and generally moved together through 2014, these spreads began to diverge in early 2015.
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.
Janet Yellen, the Fed chair, has defended her stance, citing the negative repercussions associated with an increase in interest rates in the absence of inflation.
In its latest policy move, the Bank of Japan left rates unchanged and delayed inflation target timings for the Japanese economy (EWJ) (HEWJ) (DXJ).
Paul Krugman is among those who believed that Brexit wouldn’t affect the UK economy negatively.
Paul Krugman says he’s witnessing the “Japanification” of the developed world (EFA) (VEA).
Krugman is critical of private investors being involved in the envisaged infrastructure spending.
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).