Cookie settings
Picture
Contactez-nous
Picture

EM: the relative appeal of EM EUR bonds over USD bonds

En bref

EM external debt has experienced a significant sell-off that has accelerated recently. EM debt yield has reached new highs since the GFC, and EM EUR debt index has been recently underperforming EM USD debt amid rising European recession worries.

Highlights:

  • The environment for EM external debt is facing many headwinds, that may persist over the next months. EM spreads will continue to widen. That said, total return in the second part of this year is likely to be positive thanks to the high carry. EM external debt remains a relative value and carry play.
  • EM EUR debt remains more attractive. Indeed,. EM EUR bonds are offering one of the largest pickups over EM USD bonds since January 2020.
  • We favour EM EUR IG bonds over EM EUR HY. EM EUR IG bonds are more defensive while they offer a large pickup over EM USD IG bonds. Moreover, EM HY dispersion is high and volatile.
  • At the country level, we see value across the curve in Romanian EUR bonds vs USD. In Mexico, the 5-10Y part of the EUR curve is more attractive than the USD curve. In Chile, EUR bonds offer a substantial pickup in the front end of the curve, mainly driven by global factors than local factors.
     

Read the full publication below

EM: the relative appeal of EM EUR bonds over USD bonds
Notre Offre
Investissement Responsable
Actualités
Nous Connaître
Contactez-Nous
Picture
Picture
Picture

© Generali Investments, tous droits réservés. Ce site web est géré par Generali Investments Holding S.p.A. en tant que société holding des sociétés de gestion d'actifs du Groupe Generali ayant, directement ou indirectement, une participation majoritaire dans les sociétés énumérées ci-dessous (ci-après dénommées conjointement "Generali Investments"). Ce site web peut contenir des informations relatives à l'activité des sociétés suivantes : Generali Asset Management S.p.A. Società di gestione del risparmio, Infranity, Sycomore Asset Management, Aperture Investors LLC (y compris 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* et ses filiales Global Evolution Asset Management A/S - y compris Global Evolution USA, LLC et Global Evolution Fund Management Singapore Pte. Ltd - Octagon Credit Investors, LLC, Pearlmark Real Estate, LLC ainsi que Generali Investments CEE. *Englobe Conning, Inc, Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc, Goodwin Capital Advisers, Inc (désignés comme "Conning").

Informations juridiques
Politique en Matière de Cookies
Politique de Confidentialité
Conditions Générales
Droits d’Auteur
Gender equality index
Glossaire