Asian Credit Monitor: 2018 Portfolio Strategy, US Rate Trajectory, China Credit Gap

January 7, 2018

2017 was a decent year for EM bonds in general (both hard and local currencies), amidst strong portfolio/fund net inflows, higher risk appetite and a resultant stronger incentive to chase yield. Such bullish sentiment has been led by low volatility, giving rise to better than expected risk-reward. The market has regained its composure in the last 1.5yrs or so due to accommodative monetary policy (a slow Fed exit and even slower expected ECB/BoJ QE/QQE tapering), a recovery in commodity markets and alleviation in EM. The weak USD has also acted as an impetus to be long risky assets during 2017.

In 2018, we think there is merit in the risk-trade and markets can and will grind tighter. 

 

Read more at:  https://www.bondcritic.com/published-research or

https://www.smartkarma.com/insights/asian-credit-monitor-2018-portfolio-strategy-us-rate-trajectory-china-credit-gap

Share on Facebook
Share on Twitter
Please reload

RECENT POST
Please reload

  • Facebook Social Icon
  • LinkedIn Social Icon
  • Twitter Social Icon

© 2023 by Talking Business.  Proudly created with Wix.com

  • Twitter Social Icon
  • LinkedIn Social Icon
  • Facebook Social Icon