BNP IP: What´s really happening in Emerging Markets?

The shock of 'Brexit' did not derail emerging markets. In our view Brexit reinforces, rather than weakens, the case for EM equities to further outperfrom their developed markets counterparts. We also believe that returns of Emerging Market bonds will not lag those of developed economies for much longer.

As a whole, Emerging Markets equities and bonds rallied, while currencies stabilised. But performances varied, sometimes substantially, across various regions and countries. 

Eastern European assets performed worst, essentially due to stronger direct inks of the region with UK and European Union. Asia and Latin America posted the highest post- Brexit return on equities, but on fixed income LatAM was clearly in the lead.

In this quarterly we will show you LatAm's fixed income potential, in particular how the region offers some good returns - if you know where to look!

powered by