EM Insider: What will shape the emerging agenda in Q4?
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The hunt for investment grade emerging market debt will tie investors’ fortunes in very closely with the Federal Reserve and mean this miss out on meaningful returns in the final months of the year.
That is the view of Raphael Kassin, who returned to the EM Insider hotseat to share his views on the current market conditions and where he thinks it makes sense to allocate given the current macroeconomic backdrop.
The Brazil-based bond buyer outline lists some of the markets that those with a sterner stomach may consider allocating to if they want to break away from the pack. Kassin also touched upon how the overarching approach to EMD has changed in a short space of time.
‘In the old days, asset allocators would just say: “I want to put 5% in EM, because I think it’s looking like it will give me another 5% return this year, based on spreads and treasuries. That was a nice idea; but these days, it is a little bit more complex.’
That is the view of Raphael Kassin, who returned to the EM Insider hotseat to share his views on the current market conditions and where he thinks it makes sense to allocate given the current macroeconomic backdrop.
The Brazil-based bond buyer outline lists some of the markets that those with a sterner stomach may consider allocating to if they want to break away from the pack. Kassin also touched upon how the overarching approach to EMD has changed in a short space of time.
‘In the old days, asset allocators would just say: “I want to put 5% in EM, because I think it’s looking like it will give me another 5% return this year, based on spreads and treasuries. That was a nice idea; but these days, it is a little bit more complex.’
