30. Mai 2023

Renewed attractiveness of EM USD bonds vs EM EUR bonds

In Kürze

Following wild moves over the past year, rates in developed markets (DM) have calmed somewhat, and so have EM sovereign bond markets. Some of the dislocations have now disappeared.

HIGHLIGHTS

EM EUR bonds are no longer cheap relative to USD peers after this year’s outperformance. The relative pickup vs. EM USD bonds on a cross-currency hedged basis has reverted to the long-term average across all the maturity buckets except the lowest-rated countries.
EM USD bonds have become more appealing to European investors, as certain countries now provide a compelling pickup in the USD space relative to their EUR equivalents. The total return outlook for the remainder of the year favours the EM USD index, supported by a higher carry and better duration prospects.
Yet, the EM EUR bond index may still benefit from positive technical factors. For the past, two years, EUR issuance has been on a declining trend which is expected to continue.
At the country level, Poland and Mexico’s long-end USD bonds are more attractive than their EUR equivalents. In the EUR space, EUR Romania bonds continue to be cheap compared to its rating peers and offer an attractive yield vs its USD equivalents (cross-currency hedged, same maturity).

Download the full publication below

Renewed attractiveness of EM USD bonds vs EM EUR bonds

30. Mai 2023

© Generali Investments, alle Rechte vorbehalten. Diese Website wird von der Generali Investments Holding S.p.A. als Holdinggesellschaft der wichtigsten Vermögensverwaltungsgesellschaften der Generali Gruppe zur Verfügung gestellt, die direkt oder indirekt die Mehrheitsbeteiligung an den unten aufgeführten Gesellschaften hält (im Folgenden gemeinsam "Generali Investments"). Diese Website kann Informationen über die Tätigkeit der folgenden Gesellschaften enthalten: Generali Asset Management S.p.A. Società di gestione del risparmio, Infranity, Sycomore Asset Management, Aperture Investors LLC (einschließlich Aperture Investors UK Ltd), Plenisfer Investments S.p.A. Società di gestione del risparmio, Lumyna Investments Limited, Sosteneo S. p.A. Società di gestione del risparmio, Generali Real Estate S.p.A. Società di gestione del risparmio, Conning* und unter deren Tochtergesellschaften Global Evolution Asset Management A/S - einschließlich Global Evolution USA, LLC und Global Evolution Fund Management Singapore Pte. Ltd - Octagon Credit Investors, LLC, Pearlmark Real Estate, LLC sowie Generali Investments CEE. *Einschließlich Conning, Inc, Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc, Goodwin Capital Advisers, Inc. (zusammen "Conning").

Rechtliche Hinweise

Cookie-Richtlinie

Datenschutzrichtlinie