“EM countries continue to follow prudent macro-prudential measures to ensure that credit channels remain open and liquidity remains sufficient in their respective markets,” said Steve Cook, Co-Head of Emerging Markets Fixed Income at Pinebridge’s London office.
SINGAPORE (Apr 9): As global markets struggle with market volatility from the Covid-19 pandemic, fundamental resilience in fixed income assets from Asian emerging markets (EM) have seen analysts predict a quick economic turnaround in the second half of 2020.
While the pandemic has led to short-term pessimism within global fixed income asset markets, analysts from asset management firm PineBridge Investments argue that investors have priced in an “armageddon scenario” that is unlikely to occur in reality. All things being equal, strong longer-term fundamentals and an unprecedented amount of fiscal and monetary stimulus will likely see Asian EMs experience a robust rebound within the year.
