Cookie Settings
Picture
Contatti
Picture

Renewed attractiveness of EM USD bonds vs EM EUR bonds

In breve

Following wild moves over the past year, rates in developed markets (DM) have calmed somewhat, and so have EM sovereign bond markets. Some of the dislocations have now disappeared.

HIGHLIGHTS

  • EM EUR bonds are no longer cheap relative to USD peers after this year’s outperformance. The relative pickup vs. EM USD bonds on a cross-currency hedged basis has reverted to the long-term average across all the maturity buckets except the lowest-rated countries.
  • EM USD bonds have become more appealing to European investors, as certain countries now provide a compelling pickup in the USD space relative to their EUR equivalents. The total return outlook for the remainder of the year favours the EM USD index, supported by a higher carry and better duration prospects.
  • Yet, the EM EUR bond index may still benefit from positive technical factors. For the past, two years, EUR issuance has been on a declining trend which is expected to continue.
  • At the country level, Poland and Mexico’s long-end USD bonds are more attractive than their EUR equivalents. In the EUR space, EUR Romania bonds continue to be cheap compared to its rating peers and offer an attractive yield vs its USD equivalents (cross-currency hedged, same maturity).

 

Download the full publication below

Renewed attractiveness of EM USD bonds vs EM EUR bonds
Competenze
Investimenti Responsabili
Insights
Chi Siamo
Contatti
Picture
Picture

© Generali Investments, tutti i diritti riservati. Questo sito web è fornito da Generali Investments Holding S.p.A. in qualità di holding delle principali società di gestione del risparmio del Gruppo Generali che detengono, direttamente o indirettamente, la maggioranza delle partecipazioni nelle società sotto elencate (di seguito, congiuntamente, "Generali Investments"). Questo sito web può contenere informazioni relative all'attività delle seguenti società: Generali Asset Management S.p.A. Società di gestione del risparmio, Infranity, Sycomore Asset Management, Aperture Investors LLC (inclusa Aperture Investors UK Ltd), Plenisfer Investments S.p.A. Società di gestione del risparmio, Lumyna Investments Limited, Sosteneo S. p.A. Società di gestione del risparmio, Generali Real Estate S.p.A. Società di gestione del risparmio, Conning* e tra le sue controllate Global Evolution Asset Management A/S - incluse Global Evolution USA, LLC e Global Evolution Fund Management Singapore Pte. Ltd - Octagon Credit Investors, LLC, Pearlmark Real Estate, LLC e Generali Investments CEE. *Comprende Conning, Inc., Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc. e Goodwin Capital Advisers, Inc. (collettivamente, "Conning").

Note Legali
Informativa Sui Cookie
Informativa Sulla Privacy
Termini e Condizioni
Copyright
Glossario