By Gustavo Medeiros, Ben Underhill
The Emerging View

Emerging market resilience tested by energy shock and Fed hikes

The Fed is tightening into an energy shock, a combination that has triggered EM crises before. This time the reaction has been muted. We explain why, and the four questions that will shape the outlook from here.

Subscribe to our insights

Subscribe and get notified as soon as we publish our content

The latest insights from our categories

Weekly investor research

Brazil’s swing to the right boosts EM prospects

Flávio Bolsonaro’s first-round lead makes a political transition likely, and his team’s fiscal plan could open a path back to investment grade. We also look at France, where 10-year yields hit their highest since the GFC.

Latest Insights

Market Commentary

Saudi Arabia’s Big Year

It was announced on 28 March that Saudi Arabia will be a constituent of the FTSE Emerging Markets index.
Market Commentary

The limits of protectionism

Last night the US government announced details of a USD 50bn package of tariffs on Chinese imports.
Market Commentary

Second Chance Saloon

Emerging Markets equity investors have once again over reacted to Developed Market events.
The Emerging View

2018 EM fixed income outlook

2018 is likely to see strong inflows to EM local markets on the back of strong performance, good value and improving fundamentals.
The Emerging View

The DM savings glut

In 2005 Former Fed Chairman Ben Bernanke argued that a savings glut in EM explained the US current account deficit.
The Emerging View

EM risk-free return

Last night’s S&P downgrade of El Salvador’s credit rating to Selective Default makes this report on Emerging Markets (EM) external debt extremely timely.
The Emerging View

Intra-EM trade

The view that Developed Market bonds are risk-free and that Emerging Markets (EMs) bonds are risky remains deeply entrenched.
Market Commentary

What’s down with the Dollar?

Quantitative Easing (QE) was the largest and most distortionary intervention ever made in global bond markets and it particularly favoured US markets.
The Emerging View

Passive is active: the EM index problem

In a recent article about China’s inclusion in the MSCI benchmark index the Financial Times columnist John Authers made the following astute observation: “There is something ungainly in the way [China’s index inclusion] has been outsourced to MSCI..."
Market Commentary

Putting the world into global bond funds

Global bond funds have seen a dramatic rise in assets over the past 10 years, reflecting the desire of investors to be exposed to a broader, more diverse set of assets away from their home markets.