(Part I) EM Credit Spreads: Unsustainable Divergence

EM sovereign and corporate credit markets have so far defied the selloff in EM equities and foreign exchange markets, but the odds of material spread widening are considerable. As G7 central banks have crowded out global fixed-income investors … [More.]

East Asia Blues: South China Sea Is Not Going Away Folks

A poll of BCA Research Investment Conference attendees suggested that most investors are worried about Russia and the Islamic State, but investment-relevant risk remains in East and Southeast Asia. I just got back to our Montreal HQ after two days … [More.]

We Read (And Liked)… China Goes Global: The Partial Power

Investors are faced with disparate conclusions about whether China is a truly global power. According to David Shambaugh’s comprehensive look at Chinese power and its current role in the international system,* China remains a partial power that w … [More.]

Are Investors Finally Warming Up To Chinese Stocks Again?

Chinese equity markets reacted favorable to improving PMI reports from China – a sign that investors are finally hopeful a sustained recovery is underway? The HSBC/Markit services purchasing managers' index posted its strongest reading in s … [More.]

U.S. Financials/Consumer Staples: Stick With It

Our U.S equity team continues to recommend a long financials/short consumer staples equity pair trade. There are high odds of further gains in coming months as business confidence picks up, and hiring and capital spending gain traction leading … [More.]