Over the past several years, CLOs within a core bond portfolio would have provided additional yield without adding duration as well as increased returns and lower volatility.
EMs keep an eye on changes in the U.S. Federal Reserve’s guidance, but domestic fundamentals – including the pace of disinflation and growth outlook – are just as important.
A prospect of more policy support in China is overriding weaker-than-expected activity gauges, while Brazil’s solid macro indicators are overlooked due to policy concerns.