Loco for Emerging Markets Local Debt and FX

Mariusz Banasiak, CFA, Principal and Head of Foreign Exchange Team, and Tim Whyman, Principal and Portfolio Manager, Emerging Markets Team

Despite posting solid total returns and generally outperforming most other major credit indices between January 2016 through the end of Q3 2017, investors still question if EM local currency bonds can continue to post relatively strong returns and outperform. This paper outlines the dynamics that led to the underperformance of EM assets from mid-2011 through early 2016, why the asset class is now on solid footing following several years of headwinds, and the attractive relative value opportunities that exist within EM local debt and FX.

Macro & Market Insights

Transcript

U.S. Tax Reform: The Global Implications

Nathan Sheets, PhD., Chief Economist and Head of Global Macroeconomic Research, discusses the global implications of the tax legislation and potential impacts to fixed income investors.

Following in Japan’s Footsteps: Have the U.S. and Euro Area Seen a “Lost Decade”?

Nathan Sheets, PhD., Chief Economist and Head of Global Macroeconomic Research

The U.S. and Europe, in the aftermath of the global financial crisis, seem to be experiencing many of the same headwinds that Japan did two decades ago. In our comparison of the experiences of these three major economies, we draw some conclusions about what may lie in store for the U.S. and euro area economies.

From Greece to Bondholders with Love

Jürgen Odenius, Managing Director, Economic Counsellor

Greece’s ability to potentially exit its bailout program in the summer of 2018 is a nod to both the progress made during early reviews of the ESM-financed adjustment program and to the fact that the political interests of all parties are aligned, for once. As a result, bondholders are likely to benefit from the establishment of a cash buffer that could meet the government’s financing needs for the foreseeable future.

What's Up with Global Inflation?

Nathan Sheets PhD., Chief Economist and Head of Global Macroeconomic Research

First Quarter 2018 Market Outlook

PGIM Fixed Income

Municipal Bonds: Financing U.S. Infrastructure Since the 1800s.

Susan Courtney, Managing Director and Head of the Municipal Bond Team, Lee Friedman, Principal, Municipal Bond Team

Transcript

A Global Look at FX, EM, and QE

Nathan Sheets, PGIM Fixed Income’s Chief Economist and Head of Global Macroeconomic Research, explains his short-term outlook for the U.S. dollar, its affect on EM economies, and the impact of QE on global bond yields.


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