For more information please contact us

ashmail [at] ashmoregroup [dot] com (Email Ashmore)

The US-EM high yield default rate differential widens to 2%

Weekly investor research

14 October 2019

Emerging Markets (EM) Corporate high yield bonds trades at 184bps wider than US Corporate high yield in spite of much lower default rates. Ecuador’s President Moreno entered into talks with the opposition to review a controversial cut in fuel subsidies following two weeks of protests. A no confidence vote in the Romanian government may pave the way for positive fiscal developments. Brazil sets out on the long road to making its currency convertible. South Africa’s fiscal balance worsens. Nigeria’s economic policies are heading in the wrong direction. Indian growth slows and RBI takes action. The global backdrop delivers three positive and one negative development. The Fed begins to buy bonds in what appear to be an attempt to facilitate greater government spending.

Full article

Latest Insights

View all