The coronavirus pandemic is undoubtedly creating short-term and long-term challenges for emerging
markets (EMs). But not all sovereign and corporate issuers can be painted with the same broad brush,
and placing too much weight on overly dire forecasts may result in missed opportunities.
Read the Weekly Market Snapshot to stay up-to-date with stock markets and sectors, bond market returns and financial news for the week.
Long U.S. Treasury yields ended last week slightly higher, while shorter-maturity yields finished lower.
Stocks rose again last week, marking the first time since mid-April that equities enjoyed gains for two consecutive weeks.
China’s economy – the first to enter lockdowns and the first to emerge from them – is restarting. We see the economy likely returning to near-trend growth by late 2020, supported by policy stimulus, especially on the monetary front.
COVID-19 and lower oil prices have led to indiscriminate selling across EM corporate debt, creating a potentially compelling opportunity in the shorter-dated, higher-yielding segment of the market.
Now that the proverbial rubber has met the road, many investors are questioning what’s in store for private credit in the months (and years) ahead. In many ways, the current volatility is setting the stage for significant opportunities—but managing the downside is critical.
U.S. Treasury yields rose last week, as investors expressed optimism regarding developing a COVID-19 vaccine. The first 20-year Treasury issue in decades was auctioned on Wednesday, with the issue’s yield ending the week slightly lower.
Last week was a return to "normal" for advisor activities. Trading volume was close to the average seen in 2019. Advisors were neutral on risk - more risky and less risky investments were both near net zero in flows.