Aggeliki Koutoulia, Director atBanque J. Safra Sarasin (Luxembourg) SA, send us this excellent report by Andreea Prodea – Emerging Market Credit Analyst and her team.
EM tightening cycle continues
EM corporate credit performance turned positive last week, driven by better sentimentover China Huarong, while sovereign credit performance was marginally negative, with mixed returns across regions. Investors remained cautious over EM and net weekly inflows into EM fixed income funds were modest, despite a drop in UST yields and a weaker USD. On the macroeconomic front, rising inflationary pressure in Russia led the central bank to further hike its policy rate to 5%.
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