Blooming in winter? – Emerging markets fixed income

The emerging markets fixed income team take a detailed view on what drove the market during a volatile Q3 2018 and draw some conclusion for the remainder of the year.

12 Oct 2018

Our asset class experts review the previous quarter and access opportunities for the months ahead. Emerging markets fixed income delivered mixed returns in Q3 2018.

Rising geopolitical uncertainty and poor policy responses to financial pressures, particularly in Turkey and Argentina, caused wild gyrations in credit, FX and rates amidst continued outflows from the asset class for most of the quarter.

However, we believe that various factors bode well for Q4 2018:

  • Global growth has stabilized above trend, compliments of the US
  • China is likely to show better activity numbers on expansionary policies, and trade news are likely to be mild in the remainder of the year
  • Geopolitics and demand from China supports commodity prices

Important legal information

To proceed, please confirm that you are a professional / qualified / institutional client and investor.

Views and opinions expressed are presented for informational purposes only and are a reflection of UBS Asset Management’s best judgment at the time a report or other content was compiled. UBS specifically prohibits the redistribution or reproduction of this material in whole or in part without the prior written permission of UBS and UBS accepts no liability whatsoever for the actions of third parties in this respect. The information and opinions contained in the content of this webpage have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith but no responsibility is accepted for any errors or omissions. All such information and opinions are subject to change without notice but any obligation to update or alter forward-looking statement as a result of new information, future events, or otherwise is disclaimed. Source for all data/charts, if not stated otherwise: UBS Asset Management.
Any market or investment views expressed are not intended to be investment research. Materials have not been prepared to address requirements designed to promote the independence of investment research and are not subject to any prohibition on dealing ahead of the dissemination of investment research. The information contained in this webpage does not constitute a distribution, nor should it be considered a recommendation to purchase or sell any particular security or fund. The materials and content provided will not constitute investment advice and should not be relied upon as the basis for investment decisions. As individual situations may differ, clients should seek independent professional tax, legal, accounting or other specialist advisors as to the legal and tax implication of investing. Plan fiduciaries should determine whether an investment program is prudent in light of a plan's own circumstances and overall portfolio. A number of the comments in the content of this webpage are considered forward-looking statements. Actual future results, however, may vary materially. Past performance is no guarantee of future results. Potential for profit is accompanied by possibility of loss. 
© UBS 2019 The key symbol and UBS are among the registered and unregistered trademarks of UBS.

Reset