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IShares J.P. Morgan USD Emerging Markets Bond ETF Declares Monthly Distribution of $0.4023
Treasuries Rebound From Rout With Global Bonds Still Reeling
The volatility in the bond market is easing as the issuance of investment-grade Bonds in the USA welcomes a 'thawing' phase.
On Tuesday, the high-rated CSI Enterprise bond Index market reopened after a brief lull. This was the first Trade since Trump announced the tariff policy, which led to a surge in credit risk premium and triggered the largest single-day decline since 2022.
UBS Global strategy: What do USA tariffs mean for Emerging Markets Crediting?
A key channel for the deterioration of Crediting expectations in Emerging Markets is exports.
Trump's imposing tariffs has disrupted the game board, and the central banks of Emerging Markets are caught in a dilemma between Exchange Rates and economic growth.
Emerging Markets are highly sensitive to the sharp divergence in interest rates with the USA, which often leads to a swift outflow of local capital, bringing about political instability and adverse effects on the entire economy.
The risk of economic recession is accumulating, and Pimco is Bullish on Global Bonds bringing stable returns.
As the chances of a recession in the USA rise, Pacific Investment Management Company (Pimco) emphasizes the appeal of Global Bonds as a "source of stable returns."