Mike Biggs explains how skipping the USD can bring down volatility and enhance returns when investing in EM local currency debt
Since 1988, Jupiter Ecology’s investment universe has ballooned from under 100 to over 1,200 companies. Regulation and subsidies have spawned new industries and firms, and awareness of climate change is now global.
With interest rates in the Eurozone, Denmark and Sweden having been negative for some years, investors are considering a switch from fixed rate assets to floating rate assets, which should see their coupons increase when and if rates rise.
Both short term interest rates, and yields on longer term government debt, are below inflation in most developed countries. Are inflation-linked government bonds a solution?
For years, portfolio design focused on growth, liquidity and diversification across markets. These remain important, but they no longer describe the full picture. A run of environmental shocks, disrupted supply chains and resource constraints has reminded investors that real economic systems have a direct bearing on long-term value......
Day to day market movements often seem to suggest that emerging markets are highly correlated with developed markets, and in 2008 or 2011 emerging equity markets were not generally a useful place to hide. … Read more
