Ninety One: EM Investment Grade Issuers Attractive

The video discusses the current state of emerging markets (EM) and their positioning in the global economy. It highlights the impact of the Federal Reserve's rate hikes on EM corporates and the role of local and international markets in their funding. The video also examines China's recent support measures and their effects on market confidence. It explores the interaction between government actions and private market dynamics, emphasizing the need for patience. Finally, it identifies investment opportunities in the investment-grade portion of the EM bond market, noting its high credit quality and yield advantages.

What is one reason why EM companies are considered well-positioned compared to their counterparts?

• They have a strong domestic market.

• They benefit from a weaker dollar.

• They primarily export raw materials.

• They have low production costs.

How have EM corporates managed higher rates in local markets?

• By reducing their export volumes.

• By increasing their domestic sales.

• By managing through the cycle effectively.

• By relying on international funding.

What has been a significant factor in the erosion of market confidence in China?

• Decrease in export volumes.

• Increase in commodity prices.

• Repetition of existing policies.

• New policy announcements.

What is the current focus of the Chinese government's support measures?

• Enhancing technological innovation.

• Reducing export tariffs.

• Supporting the private sector through bond sales.

• Increasing domestic consumption.

Why is the investment-grade portion of the EM corporate market favored currently?

• It has the longest duration.

• It provides access to a broad mix of economies.

• It offers the highest yield.

• It is less affected by global market trends.