Capitalizing on Currencies to Boost Emerging Market Returns (Pictet Asset Management)
Fixed income investors ignore exchange rates at their peril. They have the power to either erode or enhance the returns on an overseas bond portfolio. Which is why, in our emerging market debt strategies, we embrace them as separate sources of both risk and return.
Each currency, of course, has its unique drivers and the foreign exchange market overall is known for bouts for volatility. However, taking a medium-term view, we see the potential for broad-based appreciation of EM currencies versus the US dollar, providing a lift to total returns from local currency debt.
- Emerging Market Companies & Governments Binge on US Dollar Debt (WSJ)
- Emerging Market Debt: Hard Currency or Local Currency? (SSGA)
- 2018 Emerging Markets Outlook (Nikko Asset Management)
- What Makes Emerging Market Debt Tick? (CFA Institute)
- Moody’s Downgrades China’s But Changes Outlook to Stable From Negative (Moody’s)
- Moody’s Downgrades Macao to Aa3 with Negative Outlook (Moody’s)
- Emerging Market Local Currency Investing (BlueBay Asset Management)
- Emerging Markets’ Foreign Exchange Reserves Have Dipped (Mobius Blog)
- Terry Smith: Emerging Markets to Outperform Over the Long-term But Brace for Volatility (FE Trustnet)
- Falling Oil Prices Puts a Spotlight on Malaysia’s Debt (Reuters)