EDD News and Press, Morgan Stanley Emerging Markets Domestic Debt Fund Inc. From 01/17/23

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 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 ESG factors have been widely used as a set of criteria in a manager’s risk assessment toolkit. Making the wrong call with respect to ESG can sometimes mean excluding certain sectors based on these considerations alone. ESG factors are part of the global risk complex a...

Summary The transition to net-zero emissions has become one of the key drivers that will define the global economy over the decades to come. The Paris Agreement and national climate change plans anticipate a gradual transition to a low-carbon world – not an overnight switch to ze...

Summary The credit cycle and the economic cycle are excellent leading indicators of volatility. Both are likely to continue deteriorating in the months ahead. As such, expect high stock market volatility to be a mainstay for 2023. High Volatility Set To Continue Eq...

Summary Inflation continues to moderate, not only here, but also in Europe. Despite the negative economic reports and the reaction to the Fed rate hike, the US Dollar barely budged for the week. Value yet again outperformed Growth in the last week, this time by a spread of almost 1%...

Summary As global warming worries approach critical mass, corporate bond investors expect issuers to be part of the solution. At the epicenter of the climate crisis are greenhouse gases (GHG), which all industries emit in one way or another. Most companies strive to shrink their emi...

Summary We believe that various fixed income asset classes are more attractive now and can serve as yield enhancers or portfolio diversifiers, or both, in a variety of market environments. Using broad high yield as an example, at current levels the overall yield would need to incr...

Summary Emerging market debt investors face headwinds in the last quarter of the year, thanks to monetary tightening, geopolitical tensions, energy crises, and economic weakness in China. But despite the uncertainty, we have a constructive medium-term view. Here we take a look...

Summary Investing sustainably in emerging market corporates could be important to a the planet, and to finding fixed income growth opportunities. COP27, the 27th U.N. Climate Change Conference of the Parties to the Paris Agreement on climate, is underway in Egypt. The location...