AEMB News and Press, American Century Emerging Markets Bond ETF From 02/20/23

Summary Two key risks could challenge recent market optimism: weaker consumption and a squeeze on corporate profitability. Despite these elevated risks, current credit spreads are not reflective of recessionary risks when compared with historical levels. The opportunity set for inco...

Summary EM could be fairly characterized as having low debt and market-based yields, in contrast to higher-indebted and lower-yielding DM countries. EM’s improved fundamentals deserve a special focus as regards net external creditor status. EM is filled with net external creditor...

Summary 2022 has been a volatile year for credit markets, but a closer inspection highlights some striking differences. Yields on EM HY reached much higher levels (close to 14% at its peak), and spiked much faster, than their Euro and US equivalents, which peaked at around 9% in Q4 2022...

Summary The two key risks of fixed income are interest-rate risk and credit risk. Duration and high yield are often negatively correlated. We like the secured nature of securitized bonds. By Matthew Sheridan, CFA Transcript When we think about gener...

Summary Emerging markets have weathered tightening financial conditions. We now see a relatively good backdrop for EM assets as EM rates peak and China reopens. Stocks added to gains and bond yields fell as markets priced in Federal Reserve rate cuts later in 2023. We don’t think...

Summary Markets may be underestimating the stickiness of inflation and central banks’ determination to beat it - and what that means for growth and corporate earnings potential. We favor fixed income and credit over equities, and investment grade over high yield. Should infla...

Summary Relative to developed markets, emerging markets responded quicker to inflation, remain in better shape financially, and benefit from higher commodity prices. Notwithstanding China’s more recent policy direction, emerging markets, in general, have moved much more quickly t...

Summary As central banks battled inflation, interest rates soared and recession fears mounted. Now, central banks must slow their pace of tightening and carefully calibrate a soft landing. We address the challenges of a global slowdown, the benefits of higher yields and strategies f...

Summary The Fed’s interest rate and liquidity tools are blunt instruments, particularly in a service-oriented economy. If inflation indeed moderates from here, it is likely that interest rate volatility moderates alongside it. Monetary policy has created the asset-on/asset-of...

Summary Emerging market and high yield bond markets have improved in recent weeks, indicated by both aggregate and issuer-specific developments. There has been a general improvement in risk appetite during the last month, based on expectations of a less-severe upward trajectory for poli...