Trends with Benefits #91: The Stage is Set for Emerging Markets Bonds with Eric Fine
January 10, 2023
Listen Time 32:52 MIN
Trends with Benefits kicks off the New Year as I chat with Eric Fine, Portfolio Manager of VanEck’s active Emerging Markets Fixed Income Strategies. We discuss the U.S. economy, including monetary policy and the strength of the dollar, and how these play into foreign exchange rates and the performance of emerging markets assets.
Eric outlines the investment case for emerging markets (EM) bonds. Firstly, EMs have low debt. Secondly, they have independent central banks which can help stabilize inflation and, for countries that are toward the end of their rate hiking cycle, investors may benefit when rates are cut. Lastly, food and energy price inflation are supportive for EMs.
Additionally, Eric, a former Russia analyst, details how he avoided Russia in his investment strategy this year. He also explains that he views the redirection of energy from Russia to Asia as a long-term trend.
Show Notes:
02:28 Are Bonds Back?
03:32 U.S. Monetary Policy and Emerging Markets
06:35 Duration in EM Bonds
09:42 The U.S. Dollar and FX Rates
19:40 The Risk of Developed Markets vs. Emerging Markets
24:23 How Eric Avoided Russia
29:48 Long-Term Trend
30:30 Trend or Fad
Trend or Fad
Listen for Eric’s take on the creator economy, ESG and artificial intelligence.
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IMPORTANT DISCLOSURES
Please note that Van Eck may offer investment products that invest in the asset class(es) discussed in this blog.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck.
Investments in emerging markets bonds may be substantially more volatile, and substantially less liquid, than the bonds of governments, government agencies, and government-owned corporations located in more developed foreign markets. Emerging markets bonds can have greater custodial and operational risks, and less developed legal and accounting systems than developed markets.
All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future performance.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Van Eck Associates Corporation.
©️ Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.
Van Eck Associates Corporation
666 Third Avenue, New York, NY 10017
IMPORTANT DISCLOSURES
Please note that Van Eck may offer investment products that invest in the asset class(es) discussed in this blog.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck.
Investments in emerging markets bonds may be substantially more volatile, and substantially less liquid, than the bonds of governments, government agencies, and government-owned corporations located in more developed foreign markets. Emerging markets bonds can have greater custodial and operational risks, and less developed legal and accounting systems than developed markets.
All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future performance.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Van Eck Associates Corporation.
©️ Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.
Van Eck Associates Corporation
666 Third Avenue, New York, NY 10017