Emerging-Market Debt: Pure High-Grade Strategies Gain Popularity

Investors in hard-currency emerging-market (EM) bonds are starting to change the way they think about the opportunity. For some, this means moving to investment-grade-only strategies.  

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No Need to Fear China’s Housing Crackdown

Stuart Rae and John Lin New measures to cool China’s housing market have triggered fresh volatility and stock declines across Asia. But we think the latest government moves won’t derail the long-term drivers of Chinese real estate growth.

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Will Emerging Market Earnings Rebound in 2013?

For two years, emerging markets companies have delivered inferior earnings growth and investment returns compared to peers in sluggish developed market economies. Now, the consensus is that earnings growth will catapult from near-zero in 2012 to 13 per cent in 2013. Hopes were high at the end of 2010 and 2011, too, yet analysts were then [...]

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Surging EM Corporate Bond Issuance: Cause for Concern?

New bond issuance by emerging-market companies boomed in 2012, leading to fears of a bubble. But we think this market growth is positive for investors, rather than a harbinger of soaring debt levels or deteriorating credit quality.

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If It’s All About Macro These Days, Why Haven’t EM Stocks Done Well?

It doesn’t seem to make sense. Superior macroeconomic fundamentals in emerging countries have not led to stronger—or even positive—equity returns over the last two years. Since the beginning of 2011, the unhedged return in US dollars of the MSCI Emerging Markets (EM) Index has been (10)%, while the MSCI World Index has delivered 6.5%. What’s [...]

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Emerging Market Investors Don’t Have to Take Volatility Lying Down

We believe that emerging markets often offer better growth prospects than most developed markets. But, as my colleague Morgan Harting argues, many investors are not exploiting the full potential—often because they are afraid of volatility.

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Emerging-Market Credit
Has Come of Age

While investors have flocked to emerging-market government bonds in recent years, some still perceive emerging-market corporate bonds as an immature asset class. Shamaila Khan, who manages global credit portfolios, questions some assumptions about emerging credit.

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Has the Emerging-Market Safety Trade Gone Too Far?

The potential return for taking risk in emerging-market stocks hasn’t been this attractive in decades, as my colleague Henry D’Auria explains below.

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The Corporate Edge in Emerging Markets

Why do so many investors restrict their emerging-market bond investments to sovereigns? The corporate bond universe has grown dramatically in recent years—and offers a terrific combination of higher credit quality, wider spreads and potential capital gains.

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Managing Currency Risk Is Crucial for Emerging-Market Investments, Too

Mexican equities have far outperformed Chinese equities over the past 20 years, although China’s economy has left Mexico’s in the dust. Why? China managed its currency tightly, Mexico did not. For more on the relationship between GDP growth and equities—and the investment implications—see my colleague Morgan Harting’s guest post on FT.com. This post contains links to [...]

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