Economic Policies – Keep It Simple
The market remains nervous about Brazil’s fiscal debates – will the central bank respond with a hike? EM current account narrative is split between concerns and a comeback.
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The market remains nervous about Brazil’s fiscal debates – will the central bank respond with a hike? EM current account narrative is split between concerns and a comeback.
Compared to the U.S. and other developed markets bonds, EM bonds not only provide significantly higher nominal and real yields on average but also shorter durations.
With investment grade corporate bond yields providing meaningful income and with elevated market volatility, we believe there are now opportunities in mispriced bonds with attractive valuations.
Commodity indexes have maintained good gains all year in the face of rising interest rates and the stronger U.S. dollar.
This year’s bond market turbulence could be giving way to opportunities for municipal bonds, including high yield ETFs such as HYD and SHYD.