
Emerging market local debt (EMLD) spotlight
Invesco’s Global Debt Team offers international expertise within a broad, global lens.
In our regularly updated macroeconomic analysis, we offer an outlook for interest rates and currencies – and look at which fixed income assets are favoured across a range of market environments.
In this edition:
We share the macro conclusions from IFI’s June Global Investors’ Summit, where investors discussed macroeconomic trends in the US, Europe, China and emerging markets.
IFI credit investors discuss where they see opportunities across US and European investment grade, European high yield and emerging markets.
We are neutral European interest rates. The ECB has normalised interest rates in line with policymaker estimates of the eurozone’s neutral rate. Consequently, we believe the bar is now higher for further easing. We are overweight UK interest rates, as The Bank of England appears more confident in the disinflation trend in the UK.
We are overweight the euro as eurozone fixed income and equity assets are expected to continue to garner inflows. We are neutral the British pound, as the Bank of England continues its interest rate normalisation.