Emerging Markets

Debt Default
Emerging Markets

Historic Cascade of Defaults Is Coming for Emerging Markets

(Bloomberg) — A quarter-trillion dollar pile of distressed debt is threatening to drag the developing world into a historic cascade of defaults. Sri Lanka was the first nation to stop paying its foreign bondholders this year, burdened by unwieldy food and fuel costs that stoked protests and political chaos. Russia followed in June after getting […]

Read More
Economic Recession
Emerging Markets
Recession
U.S. Recession

Bruised Emerging Markets Are Battle-Ready for a US Recession

(Bloomberg) — Emerging markets are well positioned to stare down a US recession and may even be able to lure investors their way. That’s the message from money managers including JPMorgan Chase & Co. and Deutsche Bank AG even as fears of a contraction in the world’s largest economy spark a dash into Treasuries and […]

Read More
Emerging Markets
Fed Rate Hikes

Fed’s Rate Hike Unearths Bounty in Pockets of Emerging World

(Bloomberg) — Pockets of outperformance are starting to pop up in emerging markets even as the Federal Reserve’s most aggressive rate hike in two decades roils assets around the world. Losses in developing markets have so far been smaller than in the US during a wide-reaching rout that saw the worst Treasuries collapse in at least […]

Read More
Emerging Markets
Global Economy

Hard-Landing Dread Eclipses Brief Rally in Emerging Stocks

(Bloomberg) — The nascent rebound from a two-year low in emerging-market stocks is faltering on concern the Federal Reserve and other global policy makers will fail to orchestrate a soft landing for the world economy. It’s too early to say this is the bottom. Too early to say the only way is up,” said Wei […]

Read More
Emerging Markets
Valuations
Value Traps

Vanishing Value Trade Puts Emerging Markets at Risk of Fed Shock

(Bloomberg) — The Federal Reserve’s most aggressive policy tightening in two decades is sucking emerging markets into a “sell everything” slump, not even sparing assets that should do well when interest rates rise. Take value stocks. Shares of mature companies with high dividends and cheap valuations are finding a bid in the U.S. and Europe, […]

Read More
BRIC
Emerging Markets

As BRIC Fund Assets Collapse, Jim O’Neill Is Keeping Away

(Bloomberg) — When Jim O’Neill devised the BRIC acronym at the turn of the century, the former Goldman Sachs Group Inc. chief economist did not intend the catchy phrase to be exploited for marketing investment funds. Money managers scrambled to start funds anyway. The likes of Schroders Plc and Franklin Templeton — along with Goldman […]

Read More
Emerging Markets

Traders Look Past Ukraine Angst to Load Up on Emerging Assets

(Bloomberg) — Emerging markets are standing firm despite escalating tension along the Ukrainian border, with investors more closely eyeing the impact of major central banks catching up on the global tightening cycle. From stocks to local currencies, pockets of emerging markets are on the up. Aggressive central banks and high commodity prices are driving advances […]

Read More