Both top-down and bottom-up analysis are key when considering allocations to emerging market corporate bonds, while investors should tread carefully when it comes to high yield
Fixed Income
Will emerging market corporate bonds prove to be a permanent fixture?

Emerging market debt shows no sign of a let-up
Although yields may not be quite as high seen last year, 2013 looks to be another good year for emerging market debt with more developing countries being rerated higher
Bonds to play a different role in portfolios
High quality government bonds may promise safety, but offer extremely low yields. Yet there are still opportunities to be found elsewhere in the fixed income universe

Should clients plunge into high yield?
Willem Sels (left), UK Head of Investment Strategy at HSBC Private Bank, and Peter Branner, global CIO, SEB Asset Management, argue about the role high yield should play in client portfolios
Has the quest for yield gone too far?
Investors are pouring into investment grade corporate, high yield and emerging market bonds as they search for regular dividends. But they would be well advised to proceed with caution
High yield bond returns cater to risk-on investors
High yield funds have had an impressive year so far with investors drawn to their high levels of returns compared to equities and government bondsHigh yield funds have had an impressive year so far with investors drawn to their high levels of returns compared to equities and government bonds
Doubts creep in over emerging market outlook
Flows into emerging market bonds remain healthy despite low yields and worrying signs that China’s growth is slowing, but some fear investors will flee these markets if the good times come to an end
Credit openings emerge amid European muddle
The consequences of an unmanaged Greek exit from the euro would be so severe that central banks should continue to support the currency, creating attractive opportunities for credit strategies, according to fixed income specialists ECM
Safety first for clients wary of equity markets
With client confidence at rock bottom, many continue to seek security in government bonds, although corporates offer better yields and may prove a safer bet

BNP Paribas constructive over corporate bonds
Having deleveraged balanced sheets and refinanced themselves on favourable terms, corporates look to be in a healthy state. But slow growth in Europe means investors should favour those with a global reach
However, it is important to address discrepancies within the corporate bond market across countries through a maturity schedule.
Join PWM's Yuri Bender for the annual announcement of our Global Private Banking Awards, plus a bonus discussion about the industry's future with Mercer's Cara Williams, Aite Group's Alois Pirker and independent wealth consultant Seb Dovey.
PWM Digital Edition (December 2020 - January 2021)
Join our community
|
|
|
|
|
