Central banks are shifting toward monetary easing, as they aim to cushion a global slowdown sparked by trade tensions. This policy pivot should help stretch the cycle and has depressed long-term yields, creating a supportive backdrop for income-generating assets. One such asset we favor: local-currency EM debt.
Chart of the week
Yield ranges on various fixed income asset classes, 2018-2019
Past performance is not a reliable indicator of current or future results.
Sources: BlackRock Investment Institute, with data from Refinitiv Datastream, Bloomberg Barclays and J.P. Morgan, July 2019.
Notes: The black bars show the range