Is now the right time to buy emerging market (EM) assets? A growing number of the world’s largest money managers are saying yes, such as BlackRock, Franklin Templeton, Goldman Sachs, and an adviser to PIMCO. Against a backdrop of an oil price crisis which has been battering economies, markets, and companies; alongside worries over a slowdown in global growth led … Continue reading
In a widely expected move, the U.S. Federal Reserve (Fed) hiked its benchmark interest rate for the first time in nearly a decade on Wednesday, a decision which immediately increased borrowing costs for businesses/consumers in the U.S. and could coincidentally ripple through the world economy. After months of deliberation, Fed policy makers increased its key interest rate for short-term … Continue reading
By Charles Hugh Smith The risk-off tide is rising, and sand castles of QE will only hold the tide back for a brief period of apparent calm. A funny thing happened on the way to permanently expanding global markets: unintended consequences. Borrowing cheap, abundant U.S. dollars seemed like a good idea when the dollar was declining, … Continue reading
Emerging market (EM) corporate bonds have been dealing with a surging U.S. dollar, a collapse in global energy prices, and a likely hike in U.S. interest rates, which are underscoring growing liquidity risks, according to a new report from Fitch Ratings published on Thursday. The rapid appreciation of the U.S. dollar, potential hikes in U.S. interest rates later in 2015 and the … Continue reading