BNP Paribas Asset Prefers Asian Stocks; Concerned on EM Credit
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
BNP FP (BNP Paribas SA)
Topics
First Word Credit Asia
First Word Credit Europe
First Word Credit US
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UUID: 7947283
(Bloomberg) -- BNP Paribas Asset Management favors Asian stocks over Latin American and European shares among emerging markets as they benefit more from lower commodity prices, Daniel Morris, senior investment strategist, says in interview in Singapore.
- BNP Paribas is overweight EM shares vs developed-market stocks and overweight EM debt vs DM bonds, he says
- Within EM debt, co. likes local-currency bonds the most; next is USD sovereign debt; and the least appealing is USD corporate debt
- Corporate risk is concerning, as level of indebtedness of EM companies is high and they are now paying back those debts with depreciated currencies
- BNP Paribas has cut its exposure to EM local-currency bonds, but is still overweight
- Co. sees gains coming from exchange-rate side as it sees USD weakening against EM currencies; USD looks overvalued after years of appreciation
- Local yields not expected to fall as they are already “a bit low”
- READ: Aviva Sees Big Downside Risk for Asia Bonds Amid China Worry
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
BNP FP (BNP Paribas SA)
Topics
First Word Credit Asia
First Word Credit Europe
First Word Credit US
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283