Emerging Market Debt: Investable Amidst Volatility? 2022 | [i3] Investment Innovation Institute | 26 October 2022 | Webinar
Venue
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| Event Date |
Thu Oct 27 +04 (about 2 years ago)
In your timezone (EST): Wed Oct 26 4:00pm - Wed Oct 26 4:00pm |
| Location | Webinar |
| Region | EMEA |
Details
The Russia-Ukraine conflict, a spike in commodity prices and rising global inflation have raised fresh questions about the outlook for emerging market (EM) debt.
Recent forecasts from the International Monetary Fund and the World Bank suggest global growth is slowing. In addition, the US Federal Reserve appears set to front-load rate hikes in this tightening cycle, heightening the risk of a global recession.
Against this backdrop, it is no surprise that the asset class has been under pressure. But are we at a point of maximum pessimism, where much of the risk is priced in?
It is worth noting that many emerging markets’ central banks began raising interest rates much earlier than their developed market counterparts in this cycle to bring down inflation. This may imply that many developing economies are now in better shape than they have been in the past.
On a more positive note, some emerging markets’ proactive central bank actions, fundamentals and technical factors look attractive on a historical basis relative to developed markets. From a valuation perspective, when yields have been at or near current levels, long-term returns in emerging market debt have historically been positive.
Speakers
2022 Speaker
Luis Freitas de Oliveira
Portfolio Manager, Capital Group