Investment insights from Capital Group
EM real yields have offered a 2-4% pick up over US
EM real yield minus US real yields
Past results are not a guarantee of future results.
As at 30 October 2022. EM (emerging markets) represented by JPMorgan GBI-EM Global Diversified. EM real yields minus US real yields (10-year yields). Source: Bloomberg
EM yields may indicate an attractive entry point
Medium term (2-year) forward return when EM yields have peaked above 6.7%
Past results are not a guarantee of future results.
Data as at 30 October 2022 in USD terms. Yield-to-worst (y-t-w) and forward returns callouts shown are for 50% JPMorgan EMBI Global Diversified Index / 50% JPMorgan GBI-EM Global Diversified Index. Callout dates for >6.7% yield shown: May 2010, September 2015, December 2015, October 2018, November 2018, December 2018. Forward returns based on annualised returns. Sources: Bloomberg, JPMorgan, Morningstar
Asia lagging EM rate hiking cycle
Policy rate changes
As at 30 October 2022. Sources: Bloomberg, CEIC, Refinitiv
1. As at 21 November 2022. Source: JPMorgan GBI-EM Global Diversified Index
2. At 3 November 2022 meeting for the Czech Republic. As at 9 November for Poland. Sources: Czech National Bank, National Bank of Poland
3. As at 11 October 2022. Source: JPMorgan
U.S. Equities
Market Volatility
European Equity
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