A Quick Tour of Emerging-Markets Value

Emerging-markets assets have staged a mild recovery thus far in September after a fairly intense summer sell-off. Most obviously, emerging-markets equities have rallied nearly 9 percent from their lows on August 28, while other markets have posted gains as well: External debt spreads have narrowed,...

Full description

Saved in:
Bibliographic Details
Published inInstitutional Investor
Main Author Hood, Michael
Format Trade Publication Article
LanguageEnglish
Published New York Euromoney Institutional Investor PLC 01.09.2013
Subjects
Asset management
Business cycles
Corporate bonds
Corporate debt
Credit risk
Currency
Economic crisis
Economic recovery
Emerging markets
External debt
Sovereign debt
Standard deviation
Treasuries
Valuation
Online AccessGet full text

Cover

More Information
Summary:Emerging-markets assets have staged a mild recovery thus far in September after a fairly intense summer sell-off. Most obviously, emerging-markets equities have rallied nearly 9 percent from their lows on August 28, while other markets have posted gains as well: External debt spreads have narrowed, local bond yields have eased, and currencies have appreciated. These moves have likely come in response to three developments. First, US Treasury yields have broadly stabilized, at least since the August labor market report on September 6. Second, emerging-markets policymakers have taken modest steps to calm markets and to support currencies, exemplified by the new governor of the Reserve Bank of India, who announced a series of financial liberalization measures in his first public pronouncement. Third, and probably most important, emerging-markets growth data flow has improved.
ISSN:0020-3580