atans1

Search for yield is getting exotic

In Currencies, Emerging markets, Financial competency on 15/08/2016 at 11:35 am
From NYT Dealnook (Look at charts from FT below also)

Investors Turn to Risky Regions for Rewards Yield-starved investors are so desperate for returns that they have been willing to take on the risk of investing in a country that recently underwent a failed coup and an attack on its main airport. Turkish stocks and bonds have been rising, in spite of the country’s debt being downgraded. It seems a 10-year bond offering a 9 percent reward is too tempting to turn down, even if the inflation rate is 8.7 percent and the currency is heading south.

Stocks and bonds in developing markets have been on a tear as investors scoop up discounted stocks and hunt for returns in a world of super-low interest rates. They are rooting around in places like Brazil and South Africa, while markets more broadly appeared to be in a lull.
The turbulence that followed Britain’s vote to leave the European Union has dissipated and left behind only an uneasy calm. But there are still events that could rouse investors, as Bloomberg reports. As one fund manager put it: “At some point, the jaws must snap.”

EM markets

EM markets

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  1. […] – Singsaver.com.sg: Is a Luxury Watch a Good Investment for Singaporeans? – Dollars and Sense: Should You Get A CFA Or An MBA In Singapore? – Thoughts of a Cynical Investor: Search for yield is getting exotic […]

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