$230 Billion IMF Windfall Lures Investors Into Riskiest Debt Markets
Jul 30 2021, 3:30 PM
July 30 2021, 9:30 AM
July 30 2021, 3:30 PM
(Bloomberg) A windfall of more than $230 billion from the International Monetary Fund for emerging and developing nations is luring investors into the riskiest debt markets.
(Bloomberg) A windfall of more than $230 billion from the International Monetary Fund for emerging and developing nations is luring investors into the riskiest debt markets.
Countries like Pakistan, Ecuador and Turkey stand to receive a flood of resources to help them deal with Covid-19 health costs. The package is expected to be approved in the coming days.
The last time that the Washington-based fund took such an extraordinary step was back in the 2009 financial crisis, and it kicked off a month-long rally in high-yield emerging-market debt. Vontobel Asset Management AG, NN Investment Partners and Union Bancaire Privee Ubp SA say history can repeat itself once again.
A 2020 winner in Asia stock market is now the biggest loser theedgemarkets.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theedgemarkets.com Daily Mail and Mail on Sunday newspapers.
While technology stocks continue to front Asia’s equity rally, one hot sector from 2020 has fallen to the bottom of the leaderboard: health care.
Essentially flat year-to-date, a gauge of the sector is the worst-performing in Asia, lagging the region’s benchmark by nine percentage points. It is on track to underperform the MSCI Asia Pacific Index for a third straight month, the longest losing streak in three years.
A growing expectation of a return to normal for the global economy has caused investors to abandon defensive bets made during the pandemic, such as health care the second-best performer last year. Energy shares have staged a comeback on the rebound in crude prices, while financials have strengthened thanks to the rise in bond yields. “The market is reflecting re-opening and recovery expectations, which is supportive of cyclical sectors rather than health care,” said Kieran Calder, head of Asia equity research at Union Bancaire Privee Ubp SA.
A 2020 winner in Asia stock market is now the biggest loser moneyweb.co.za - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneyweb.co.za Daily Mail and Mail on Sunday newspapers.