MSD News and Press, Morgan Stanley Emerging Markets Debt Fund Inc. From 10/07/22

Summary The Economist recently highlighted numerous issues with the present state of ESG investing and how it is falling short of its intended goals. Investors face challenges understanding the nuances of ESG strategies and what the strategies they invest in are accomplishing. ...

Summary The environmental factors (E) in ESG are dominated by measures of carbon emissions, energy and net zero, but less attention is paid to the use of materials and waste. This, in turn, is reflected in the relatively poor quality of data and associated metrics on waste and rec...

Summary Rising prices continue to confound expectations that slowing global growth will ease inflation pressures. Financial market turbulence may be here to stay for some time. The ability to rebalance negatively correlated assets helps generate income and potential return whi...

Summary The new regime poses an unavoidable trade-off for central banks: tame inflation by hiking or preserve growth. We see them overtightening rates, so keep risk low. UK gilt yields reached 14-year highs before the Bank of England intervened to halt the selloff. Yields on 10-ye...

Summary We believe it is unlikely that Fed Chair Jerome Powell will navigate a pivot to a less-hawkish stance before early in 2023. We expect China to grow at a meager 2%-3% pace in 2022, with the potential for these risks to bleed into 2023, as a slowing developed-market consumer...

Summary New York Climate Week acknowledged the challenges the energy crisis has brought but emphasised the importance of rolling out clean energy faster under this context. Businesses need to think long-term, target short-term, disclose quality sustainability data, collaborate to ...

Summary Last week brought the third consecutive 75-basis point rate hike from the U.S. Federal Reserve. The week also brought more signs of this rapid hiking cycle reverberating worldwide. We think credit spreads can offer a remunerative and relatively calm haven amid the vola...

Summary The effects of volatility in 2022 have been felt by investors globally — however, there may be opportunities to be selective within emerging markets. Accessing less-volatile stocks in emerging markets through minimum volatility ETFs may be attractive as a way to mai...

Summary In emerging markets valuations look attractive today after the losses across financial markets early this year. PIMCO’s investment process is founded upon our macroeconomic outlook and our in-house country and credit research. Although lower-quality frontier mar...

A climate mitigation policy mix of carbon taxes, green subsidies, and infrastructure investment could reduce global balances by a quarter by 2027. Global interest rates are also likely to fall in the longer term because of the decline in investment in fossil fuels, following an initia...