Insights

Historically, investing in emerging markets (EM) has implied accepting higher volatility and risks, including political instability and currency devaluations. Yet, over the past decade, the structure and drivers of the asset class have changed.Today, an EM debt (EMD) investment can be made based on the perspective for sustained economic growth, ongoing governance improvements, and a more mature structure for debt issuance, characterised by increased issuance in local debt markets versus hard currency (external) debt markets.In this article, Ostrum AM’s EMD experts Brigitte Le Bris, Sebastien Thenard and Clothilde Malaussene share what they see as the key risks and opportunities for EM investors.

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets.

In 2023, money market funds experienced a significant increase, benefiting from a backdrop of rising interest rates and inflation. Investors are reassessing their approach to liquidity, with a 21% increase in assets under management, followed by an 11% rise in 2024. As the prospect of rate cuts looms, the sustainability of these attractive yields remains uncertain.

The world is holding its breath ahead of the US elections on November 5. The outcome will be positive or negative for emerging market currencies, depending on the political choices implemented.

Fixed income requires:     • a clear understanding of credit risk     • a strong monitoring of duration risk in your portfolio     • and a robust view on the evolution of these two factorsWe have the scale and are well equipped to meet these challenges, and properly serve our clients’ fixed income needs

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets.

As of early September, 2024 has been an interesting year for fixed income investments, and especially for Euro Credit.With central banks decreasing rates, we expect short-term yields to mechanically fall, which reinforces the attractiveness of the long end of the curves. It offers opportunities to seize additional yield and allows to implement a carry roll down strategy.

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets.

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets.

The outlook for the credit market and for short-term bonds is optimistic. At Ostrum Asset Management, we believe that short-term bond allocation is expected to remain an attractive investment in the future.Reach out to the analysis of Emmanuel Schatz, credit portfolio manager at Ostrum Asset Management, in this video.

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets.