HALISTER1: BlackRock Says Emerging Markets Among Best Hideouts From Fed

BlackRock Says Emerging Markets Among Best Hideouts From Fed

(Bloomberg) -- Global yield scarcity and recovery in EM fundamentals boost appeal, managing directors Pablo Goldberg and Sergio Trigo Paz say in an e-mailed note.
  • EMD is among the few asset classes that may best cushion a move by the Fed to resume gradual pace of policy normalization
  • While ‘great migration’ of funds toward EM debt continues investors should focus on relative value; active duration management becomes more important
  • “Active, bottom-up driven positioning” may be key to excess returns
  • BlackRock prefers countries with either strong fiscal positions or room to maneuver, and those that can actually deliver on reform
  • EMD corporates present a “solid hunting ground”
  • Local currency debt provides greater potential
  • At the macro level, investors should focus on growth, inflation divergence, fiscal discipline, exports
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
BLK US (BlackRock Inc)

People
Pablo Goldberg (BlackRock Inc)
Sergio Trigo Paz (BlackRock Inc)

To de-activate this alert, click here

UUID: 7947283