Top of the Morning: Emerging Markets - A supportive Fed easing at last
From the original
With the Fed’s easing cycle underway, we examine how central banks across the EM landscape are moving toward accommodative policies, and the implications for investors. Featured is Alejo Czerwonko, Chief Investment Officer for Emerging Markets Americas, UBS Chief Investment Offic
Related speeches
4 itemsTop of the Morning: Emerging Markets - Fed hikes matter, but global liquidity matters more
The desk highlights that global liquidity dynamics are gaining precedence over Fed rate decisions in shaping emerging market conditions. Per the full note from UBS, while the FOMC hike sends immediate shockwaves, it's crucial to consider that aggregate liquidity remains favorable. This analysis suggests heightened fund flows towards emerging markets when conditions are less restrictive, an insight supported by stable credit spreads and robust equity performance across various regions. The consensus outlook suggests a nuanced alignment with these views, but with notable divergence on specific targets, mainly held in the context of near-zero default risk in emerging market bond assets.