What’s Driving Emerging Markets Local Currency Debt?
During the past two decades, EM (emerging markets) local debt has evolved to become the largest and most liquid debt market within the emerging market bond space.
Real Insights
How TransDigm Group Reinforces Switching Costs
TransDigm Group Inc. (TDG US) is a leading designer and manufacturer of engineered aircraft components for commercial and military aircraft.
How Microsoft Earned a Wide Economic Moat Rating
The technology industry is the most competitive industry, making it crucial for companies in this industry to have a competitive edge for survival.
How Municipalities Can Prevent Cyber Attacks
One possible driver to action could simply be alerting the public through their local media outlets just what havoc can be, and has been, wrought by cyberattacks.
Why Switching Costs Help Build Powerful Moats
Many successful companies build customer loyalty by offering high-quality products and/or services. Some also have the unique advantage of integrating their products….
Ransomware Attacks Are on the Rise
We are all potentially at risk of cyberattack – directly or indirectly. When it comes to municipalities, this may not always be obvious to the average state or city taxpayer.
Should Energy Stocks Go in Your Back-to-School Shopping Basket?
The energy sector, as tracked by the Energy Select Sector SPDR Fund (XLE), has lost ~17.0% year-to-date as of August 31.
How Did Markets Fare in the Summer of 2017?
Summer months have a tendency to be unfavorable for the stock market. Empirical evidence has shown that average returns for the S&P 500 are negative during summer months.
Does the Green Bond Premium Exist?
Despite the rapid rise in issuance, demand for green bonds continues to outshine supply. The excess demand for green bonds has led to higher returns.
Green Bond Drivers: The Same as Conventional Bonds
Green bonds are used by organizations worldwide to fund environmentally sustainable projects such as renewable energy, energy efficiency, and clean water.
The Network Effect: A Proven Way to Create a Moat
VanEck The Network Effect: A Proven Way to Create a Moat The economic principle of the “Network Effect” has risen to the forefront as our world has grown increasingly digital. It describes the phenomenon of an external effect in the economy, where the value of a product or service increases as the number of its […]
How Are Gold and Bitcoin Different?
Bitcoins can be sent across borders. Bitcoin payment will be the same as paying someone in the same country. People don’t use gold much anymore.
EM Corporates Offer Huge Opportunities and Better Profile
VanEck A Diverse and Growing Category The emerging markets high yield bond market has grown tremendously over the past 10 years, from $56 billion at the end of 2007 to $440 billion as of June 30, 2017.[2. Source: BofA Merrill Lynch.] In addition to growing in size, diversity within the category has also increased. Investors currently […]
How to Benefit from Emerging Markets Corporate Debt
VanEck Higher Yield and Lower Duration Compared to U.S. high yield bonds, emerging markets high yield bonds offered a 90 bps yield pickup as of June 30, 2017.[1.U.S. high yield bonds and emerging markets high yield bonds are represented by BofA Merrill Lynch US High Yield Index and BofA Merrill Lynch Diversified HY US Emerging […]
Bitcoin Might Not Replace Gold as a Safe-Haven Asset
Bitcoin is a global digital payment system that offers lower transaction fees than other online payment systems. It’s operated by a decentralized authority.
Kao Corporation: What’s Sharpening Its Competitive Edge?
Kao Corporation has become the largest branded and packaged goods company in Japan and the second-largest company in the cosmetics category.
What’s Compass Minerals Doing to Gain a Cost Advantage?
Led by its superior assets, location, and geological advantages, Compass Minerals holds a competitive position with a wide economic moat rating.
How Ramsay Health Care Became a Cost Leader
Ramsay Health Care is a market leader in private healthcare in Australia, treating almost 3 million patients each year.
Why Investors Need Not Worry Over the Asian Rally
Asian equities have seen a sharp rally in 2017 due to attractive valuations and upward earnings potential.
An Asian Rally Will Likely Hinge on This
Although Asian markets have outperformed most of the other regions this year, their performance over the past few years has remained sluggish overall.
Will North Korea Undermine Broader Asian Markets?
Under Kim Jong-Un, North Korea has adopted a more aggressive stance toward its regional adversaries, fueling unprecedented tension in the region.
Is It Time to Focus on Asian Markets?
Asian nations (AAXJ) are experiencing a continuation of the economic recovery that has been going on for a couple of quarters now.
How to Take Exposure to Moat Stocks
The VanEck Vectors Morningstar Wide Moat ETF (MOAT) tracks the price and yield performance of the Morningstar Wide Moat Focus Index.
Lowe’s: Great Business Built on Logistics Strength
Lowe’s Companies (LOW) operates 2,129 home improvement and hardware stores in the United States, Canada, and Mexico.
Carnival: Strong Brands Help Develop Market Niche
Carnival is among the most profitable and financially strong leisure travel companies in the world. It provides leisure travel to all major cruise destinations across the globe.
How Bayer Is Creating Value through Innovation
In 2016, Bayer owned ~51,000 valid patent applications and patents relating to ~5,000 protected inventions worldwide.
How Intangible Assets Create Value
Intangible assets are nonphysical and nonmonetary in nature, which makes it hard to measure and manage them. They can be worth more to a company than tangible assets.
How to Identify Economic Moats
In this series, we’ll discuss how intangible assets can create long-term competitive advantages for companies.
Will the Real Estate Sector Shine Thrive this Summer?
Another important summer activity is shopping for a new home. Realtors often talk of curb appeal, and there’s no better time than summer.
How the Summer Heat Affects Homebuilder Stocks
The warmer weather inevitably brings the sounds of hammering, drilling, and backing-up-beeping through the windows along with the warm breeze.
Interesting Options for Summer Investments
Summer is finally here after only nine months of waiting. Now might be a good time to look at investments that have to do with the summer months.
Can Backwardation Drive Energy Returns?
ETF Securities A return to backwardation? Among the three components of total return when investing in futures contracts (price return, roll yield, and collateral yield), the roll yield for the energy sector has been a continuous performance drag over the last decade (see “Drag on performance” chart below). Oil futures markets are most often in […]
How Visa Created a Network Effect
Visa (V) boasts a significant advantage in terms of its worldwide acceptance. This availability lent to the network effect’s being the source of the company’s moat.
How Salesforce Gained Its Moat
Salesforce.com is a leader in the customer relationship management industry. The company has built its moat on the back of its network effect and strong brand.
Do Tobacco Bonds Warrant a Place in Your Portfolio?
Tobacco bonds have been volatile in the last seven years. Falling MSA payments caused the volatility. Tobacco bonds offer relatively good cash flow returns.
Why ETFs Are Seeing Increased Popularity
Mutual fund ownership of equities is at the lowest level in ~13 years, while ETFs (SPY) (IVV) are gradually increasing their share in the stock market.
Jury Hasn’t Decided on ETFs’ Role in Stock Market Rise
Although ETF (VTV) ownership increased substantially during the last 20 years, it still isn’t high enough to meaningfully impact stock prices.
What Are Tobacco Bonds?
Tobacco bonds are a highly liquid, large, and high-yielding sector. Tobacco bonds belong to the municipal high-yield bond market (HYD).
Substantial Asia Exposure Could Improve Risk-Adjusted Returns
A higher allocation to Asia could certainly provide diversification benefits to investors while enhancing their risk-adjusted returns.
Why Investors Should Consider Core Asian Funds
The EAFE Index provides exposure to slow-growing developed markets while disregarding Asia’s fast-growing markets (FXI) (INDA).
Could China Attract Higher Inflows after Bond Market Reforms?
The yuan remains a focus of attention of the international community and a key risk for China’s macroeconomic stability in recent years.
What’s behind Asia’s High Total Factor Productivity Growth?
Total factor productivity measures increases in overall output due to technological advancement without an increase in inputs.
Using Asian Markets’ Low Correlation with US Markets
The correlation between US and international markets varies depending on market cycles.
What’s Driving Asia’s Growth?
For the last three decades, Asia has posted higher economic growth than any other region of the world.
How Apple Has Contributed to Green Bonds
Apple (IYW) (XLK) is not only the first US technology company but also the first and largest US corporation to issue green bonds.
How Does Moat Investing Provide a Competitive Advantage?
Morningstar helps investors choose companies with economic moats. “Economic moats” refers to companies’ ability to obtain an advantage over competitors.
What Difference Does Index Inclusion Make?
Government bond yields in China are higher than its Asian counterparts such as South Korea and Singapore and much higher than major developed markets.
A Look at Asia’s Continuing Rise
Asian economies’ rapid urbanization is notable. A shift is expected to unfold in the next few decades, which should boost development and business growth.
How Higher Inflows to China Could Impact Other Emerging Markets
With the onset of reforms, foreign holdings in China’s onshore bond (EMB) (PCY) market is gradually increasing.
What’s Holding Back Foreign Investors from China?
Many leading bond index providers are still not including China’s onshore bonds in their benchmark indexes due to various regulatory and operational concerns.