- Emerging markets fixed income delivered negative total returns in Q3, mostly in response to policy mistakes and reversals by developed market central banks.
- Emerging markets are facing the negative price effect of higher global rates as developed market central banks continue to fight inflation, while starting to feel the negative income effect from lower global growth.
- Weak cyclical growth in China is likely to be detrimental to emerging markets as China is one of the three most important pillars driving global trade and growth and a large consumer of commodities. In the absence of China’s recovery to counteract a recession in the US and the Eurozone, emerging market external and fiscal dynamics could weaken on lower commodity prices and export volumes.
- In emerging market sovereign credit ratings, our analysis shows that while between 2003-2012 there was a slow improvement in average credit quality, since 2013 they have deteriorated.
- Chile has long been considered the Switzerland of Latin America, with a neoliberal market-led economic model that was deemed beneficial for the country. However, since the severe social unrest and political crisis in 2019, Chilean financial assets have traded with a significant risk premium. We assess the outlook for the country’s currency and bonds.
Make an inquiry
Fill in an inquiry form and leave your details – we’ll be back in touch.
Whether you have a question or a request, we will be happy to get in touch with you. Contact our UBS Asset Management team for more details.
Introducing our leadership team
Meet the members of the team responsible for UBS Asset Management’s strategic direction.
Find our offices
We’re closer than you think, find out here