EDD News and Press, Morgan Stanley Emerging Markets Domestic Debt Fund Inc. From 04/27/21

We stick to our pro-risk stance and tweak our tactical views as the U.S. leads a powerful global economic restart and our new nominal theme plays out. Stocks were little changed on the week as markets digested strong first-quarter earnings reports and bond yields eased. The Federa...

Unlike in previous quarters, the sharp improvement in growth expectations resulted in higher government bond yields globally. EMD hard currency valuations remain attractive. The U.S.-dollar-denominated sovereign curve in Egypt is one of the steepest in the investable universe. ...

The IMF has called on countries to spend as much as they can to protect the vulnerable and limit long-lasting damage to economies, stressing the need for spending to be well-targeted. In an earlier paper we showed that, provided fiscal space remains ample, countries should not run lar...

We see the restart, stabilizing U.S. Treasury yields and relatively cheap valuations boosting emerging market (EM) assets after a choppy start to 2021. U.S. stocks hit record highs and 10-year Treasury yields fell to the lowest level in more than a month. Major U.S. banks reported pos...

The fixed income world is beginning to undergo a multiyear transition as aggressive monetary accommodation and government spending across key economies drive higher near-term economic growth rates. The result could be a shift to higher real rates as output gaps narrow, as well as mode...

The first quarter of 2021 brought what the Asset Allocation Committee expected, and as it looks to the next six to 12 months, it faces two questions. Do we think the economy will overheat, pushing bond yields to levels that unsettle equity markets or even force central banks to stifle...

Emerging markets bonds historically do well in a rising interest rate environment. The U.S. is on track to potentially grow faster than China in 2021, in our view. Emerging markets economies tend to benefit from U.S. twin deficits. For further details see: Fortify Your 4...

Initial signs may appear as base effects and higher commodity prices push headline inflation in advanced economies temporarily higher. With massive stimulus funds sloshing around the global economy, it's prudent to be prepared - and that means staying active. With the right strate...

Fundamentals are in place for a major EM crisis, and I see reasonable probabilities of an unfolding crisis in Turkey providing the catalyst. Meanwhile, complacency in "developed" markets remains formidable. Is systemic crisis even possible while the major central banks are running ful...

We believe the Brazilian bond market has overpriced policy tightening over the next 12 to 18 months. Real rates will likely remain quite low for some time given the protracted post-COVID recovery and available spare capacity in the economy. While Brazil is among the first major EM...