September 17, 2019 To Hedge or Not to Hedge? With Currency, It’s a Vital Question by Leon Zhu, Aditya Monappa With global markets growing more volatile, we’re often asked what we think are the most underappreciated risks that investors face today. One in particular stands out: currency risk—especially for non-US dollar–based investors. Currency, Multi-Asset Likes 0 SHARE Bookmarks
August 07, 2019 China’s Currency Weakness: Not as Bad as it Seems—Yet by Mo Ji China’s currency depreciated this week, with the exchange rate rising to more than 7.0 renminbi per US dollar, unnerving investors and markets worldwide. Here’s the good news: we don’t think the renminbi will continue to weaken at the same pace. China, Currency, Economics, Trade Wars Likes 0 SHARE Bookmarks
August 05, 2019 Is a New Front About to Open in the US-China Trade War? by Eric Winograd Financial markets are focused on the ongoing trade war between the US and China—which goods and services are in play and what measures are being taken or threatened in each case. But the trade conflict could spill over into currency markets—and that’s a risk that bears watching. China, Currency, Economics, Trade Wars Likes 0 SHARE Bookmarks
February 27, 2019 The Long View: China—The Indispensable Nation? by Douglas J. Peebles, Eric Winograd A generation ago, China had little influence beyond its borders. Today, its importance to the world economy rivals the United States’. China’s role in markets is growing, too: in April, it will join a major global bond index. The future may bring a freely traded Chinese yuan and a challenge to the US dollar. China, Currency, Economics, Fixed Income, Late-Cycle Investing Likes 0 SHARE Bookmarks
November 28, 2018 Active US Investors Gain Hedge Edge with Global Bonds by Erin Bigley Rates are low globally. But yield isn’t the only component to consider when investing. Active US-based investors can take advantage of differences between the US dollar and other currencies to pick up a decided edge by investing in international bond markets. Asset Allocation, Currency, Fixed Income, Rising Rates Likes 0 SHARE Bookmarks
August 30, 2018 How Contagious Is Turkey? by Morgan Harting, Christian DiClementi The Turkish lira has dropped 38% as of August 28, putting pressure on inflation as well as the country’s debt-heavy corporations and banks. Investor jitters have spread over the past week to some other emerging markets and European banks with Turkish exposure, but we don’t expect contagion to expand much further from here. Currency, Emerging Markets, Fixed Income, Multi-Asset, Volatility Likes 0 SHARE Bookmarks
August 27, 2018 Imbalance of Trade: What Trade Wars Mean for Market Stability by Douglas J. Peebles Reduced global trade may have the unintended consequence of strengthening the US dollar, raising interest rates and pushing down stock prices. Together with tighter Federal Reserve policy, these developments may increase market turbulence. Currency, Fixed Income, Trade Wars, Volatility Likes 0 SHARE Bookmarks
August 15, 2018 Will Chinese Renminbi Destabilize Markets as Trade Wars Escalate? by Mo Ji The trade war between Washington and Beijing has tipped China’s currency onto a path of destabilization. If hostilities escalate, China may let its renminbi (RMB) fall further. For investors, that could mean more volatility and tighter financial conditions. China, Currency, Economics, Emerging Markets, Fixed Income, Trade Wars Likes 0 SHARE Bookmarks
June 04, 2018 Can Emerging Markets Defy a Stronger Dollar? by Morgan Harting Turkey’s currency crisis has spooked emerging-market (EM) investors, especially amid growing concern about the strengthening US dollar. We think countries and companies in the developing world are actually much more resilient to a stronger dollar than in the past. Currency, Emerging Markets, Equities, Fixed Income, Volatility Likes 0 SHARE Bookmarks
November 28, 2017 Global Bonds: You Asked, We Hedged by Scott DiMaggio With the Federal Reserve hiking and US rates on the rise, there’s never been a better time to reposition into global bonds as your core mandate. But when you do, it’s crucial to fully hedge against currency risk. Currency, Fixed Income, Rising Rates, Volatility Likes 0 SHARE Bookmarks
September 11, 2017 Beyond SDR: China’s US$3 Trillion Challenge The elevation of China’s currency to reserve status is symbolically important for the country, but it’s only part of a process that could trigger capital inflows of up to US$3 trillion—and cause some headaches for the country’s financial authorities. Currency, Economics, Emerging Markets, Equities, Fixed Income Likes 0 SHARE Bookmarks
September 09, 2017 China Walks an FX Tightrope The liberalization of China’s currency and capital account is under threat as the renminbi (RMB) falls, capital outflows intensify and foreign reserves dwindle. Will the country forge ahead with its reforms or pause to allow the market to settle down? Both, in our view, have their pros and cons. Currency, Economics, Emerging Markets Likes 0 SHARE Bookmarks
July 18, 2017 Looking for Emerging-Market Opportunities? Go Local. by Shamaila Khan, Christian DiClementi For investors in search of a way to boost income and diversify their bond portfolios, now may be the time to consider what local-currency emerging-market bonds offer. Currency, Emerging Markets, Fixed Income Likes 0 SHARE Bookmarks