A sell-off in emerging markets at the end of last year has reversed – and long-term economic factors are driving the change, according to Matthew Arnold of State Street Global Advisors.
The Taiwanese insurer has welcomed the US rate hike, but is concerned about global uncertainty. It is buying more emerging-market bonds, with the exception of Chinese debt.
More EM fixed income investors are turning to passive approaches as they appreciate the cost-effective and diversified nature of passively managed vehicles such as ETFs, says Matthew J. Arnold of SSGA.
Taiwan's $115 billion state pension manager is considering how to raise its foreign smart-beta exposure and will review its emerging-market allocation this year after taking losses on EM debt.
Despite performing very well last year, Asian local-currency debt still has a lot to offer investors looking to diversify away from developed-market government bonds.
We present the third in our series of predictions for the Year of the Rooster. Today: will the Bank of Japan be forced to re-think its 10-year bond yield target?