- Uncertainty has increased due to Russian-Ukrainian tensions, which raise concerns about a potential military escalation by Russia.
- We believe Turkey’s unorthodox economic policy mix has caused a rapid depreciation of the lira and elevated inflation.
- Mixed prospects for the external sector performance, relatively tight valuations, and a troubling fiscal outlook continue to underpin our negative fundamental view of South Africa.
- While it is impossible to predict the endgame of Russian tensions with Ukraine, we do not believe that current spread levels compensate investors for the uncertainty around a potentially negative outcome.
For further details see:
Beta-Bucket Update: Positive Long Term, But Short-Term Headwinds