Why emerging market high yield debt will rally as defaults increase

Pandemic throwing up more surprises

clock
Dmitry Griko of EG Capital Advisors
Image:

Dmitry Griko of EG Capital Advisors

When selecting where to invest, one cannot take an overly simplistic view of the markets and individual securities. Unfortunately, this has been especially prevalent since the outbreak of the coronavirus pandemic.

Private investors flocked into supermarket stocks in March as the newspapers were filled with reports of panic buying and enormous queues. Yet increased costs and higher sales of lower-margin products meant this had a limited impact on their bottom line. It is a similar story in the healthcare sector; pharmaceuticals soared on every rumour of a breakthrough in developing a treatment for Covid-19, yet numerous biotech managers - some of whom own these stocks in their portfolio - have warned the public mood means these companies would be unlikely to charge much more than cost price for suc...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

Industry Voice: T. Rowe Price's 2022 Midyear Market Outlook summary

Industry Voice: T. Rowe Price's 2022 Midyear Market Outlook summary

Transitioning to a new paradigm

Ritu Vohora, Investment Specialist, Capital Markets at T. Rowe Price
clock 23 June 2022 • 2 min read
Amazon shares are down 40% from its peak

Growth stock pickers feel like 'a kid in a candy shop'

'It is time to go shopping'

clock 22 June 2022 • 4 min read
Offered to both institutional and retail investors, the portfolio is a new sub-fund of the Luxembourg UCITS Goldman Sachs Funds SICAV.

Goldman Sachs AM launches emerging markets ex-China equity fund

Benchmarked against MSCI ex-China index

clock 21 June 2022 • 1 min read
Trustpilot