No Read Across in EM
Friday, May 15th, 2020 Categories: Emerging Markets
Don’t treat Asia like Latin America
Concerns about the credit quality of EM Bonds are rising. Some of the countries often cited are frontier, rather than emerging markets, but the concerns are well-founded. For us, the key difference from other bond categories is that the Fed won’t be buying them. We don’t think there is a read-across to EM Equities, which are now less volatile than the US, mainly because the major Asian economies have dealt with the virus better.