For much of this year, investors were in a waiting game searching for drivers. That waiting game is over: Sentiment has universally shifted toward caution, with the expectation of a bumpy ride ahead.
Our readers may recall that we viewed Q2 as a waiting game for markets searching for drivers. For a variety of reasons, that waiting has likely been extended into Q3 or even Q4.
Our faithful readers will know that we have been relentlessly negative on emerging markets (EM) for most of this year. We are turning a little more constructive now but more needs to be seen. The global liquidity story has turned more positive for EM.
Asset managers dealing in FX forwards should be aware of Covered Interest Rate Parity frictions to ensure that their execution styles align with their clients’ interests. In this piece, by BBH's Hendrik Klaus, we present a framework for examining ...