The synchronized recovery in global earnings finally appears to be here. Every major market region in the world is now seeing significant earnings growth. Are there still opportunities in global high yield?
Given the higher levels of risk and return associated with investing in emerging markets, governance and sustainability analysis is critical. Investors are generally not able to rely on the same level of regulatory or legal protection as in developed markets.
WAM's John Bellows discusses the political realities of Trump's appointment of the next Federal Reserve chair.
Emerging Markets are more resilient to any potential new taper tantrum as their spreads are higher and their currencies lower relative to 2013.
Emerging markets look well placed to outperform developed markets as profitability recovers. That said, the growth outlook across these markets is asymmetric in nature. Demographic and political trends are also widening across the asset class. With that in mind, investors need to think carefully about how best to access the long-term growth story these markets can offer. In particular, should investors opt for a passive or active approach?
Given the higher levels of risk and return associated with investing in emerging markets, governance and sustainability analysis is critical. Investors are generally not able to rely on the same level of regulatory or legal protection as in developed markets. However, when it comes to analyzing environmental, social and governance (ESG) factors in emerging markets, developed-world methods often don't translate.
There's growing evidence that companies who integrate societal concerns about the workplace, environment and corporate governance into their operations may have a competitive advantage and improved growth potential.
In a way, the Fed was a key first responder to the global financial crisis. And now, it's going to be the first major central bank to pursue quantitative tightening (QT), the more uncertain leg of its great "monetary policy experiment."
Portfolio Manager Chuck Royce and Co-CIO Francis Gannon see a consolidating asset class ready to make its next move up.
Biotech companies represent a potential driver of above-average long-term earnings growth, yet current valuations appear to assign little value to the rich research and development pipelines in many firms in this industry.
Credit Rating Agencies are making meaningful progress in identifying and reflecting environmental, social and governance (ESG) risks in the credit rating process. This is both welcome and encouraging, but more needs to be done to ensure the rewards fixed income investors can expect reflect the risks they are taking.