Rewind the clock back to 1998; the Asian financial crisis sparked a massive devaluation of Asian currencies, with many plunging by 30% to 40%. This exposed the danger of taking on short-term foreign-currency debt while relying on long-term local currency-generating assets for repayment – a currency and a maturity mismatch.
A Democrat win may negatively hurt US growth, but whether Trump or his blue counterpart win the election, expectations of lower global rates will spark a renewed search for more attractive yields elsewhere. Asia presents opportunities for a yield pickup.
The growth of fixed income ETF instruments has been robust, so it’s of little surprise investors have concerns over the risks entailed. Here we dispel a few myths about the investment vehicle.
A new survey by Greenwich Associates reveals many global investors are considering Asian opportunities given that low yields in the US, Europe and Japan have proved advantageous for those investing in Asian fixed income assets.
The ongoing trade dispute between two of the world’s largest nations is a significant force influencing market movements. State Street Global Advisors’ Kheng-Siang Ng believes a successful resolution could unleash pent-up demand.
Misgivings over trade disputes, Brexit and US growth continue to be felt in Asian bond markets. But will emerging market assets rally if the US Fed takes a less hawkish stance this year?