OMGI: Trump’s woes a blessing for EM debt

The Trump administration is being thwarted from advancing its agenda while global growth remains solid, says John Peta, head of emerging market debt at Old Mutual Global Investors.
While the allies and adversaries of the US have been watching the unfolding drama in the White House with mixed emotions, the response of emerging-market debt investors has been rather more straightforward: joyful relief.
When Donald Trump ascended to the US presidency, the policy agenda on which he had campaigned posed a significant threat to the asset class.

Draghi and the Euro Inflation-Rates Mismatch

Diverging market views on the euro-area outlook offer investment opportunities, says Paul Shanta, portfolio manager, Old Mutual Absolute Return Government Bond Fund, Old Mutual Global Investors:

Mario Draghi rattled fixed-income markets last month when the European Central Bank (ECB) president hinted at the eventual unwinding of the stimulus programme underway in the euro area: bond yields spiked and the euro lurched higher.

On Thursday, after the ECB’s Governing Council meeting, he has a chance to further flesh out those remarks or row back on them.


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