DWS's Taylor Sees Positive Environment for Asian, Emerging-Market Bonds

The video discusses the impact of market volatility on stock performance, highlighting the lag in Asia and emerging markets due to trade issues and slower China growth. Recent optimism is noted due to improvements in Hong Kong, policy responses from China, and Brexit clarity. Bond yields are expected to remain low, with positive trends in the credit market despite some risks in the US high yield space. Emerging markets present selective opportunities, particularly in sovereign and credit sectors, though they face challenges from trade issues and earnings downgrades.

What factors have contributed to the recent optimism in the stock market?

• Higher bond yields and credit deterioration

• Rising default rates in the US

• Improved Hong Kong situation and policy response from China

• Increased trade tensions and slower China growth

What is the expected trend for bond yields according to the transcript?

• Bond yields are expected to rise significantly

• Bond yields will stabilize at current levels

• Bond yields are expected to remain lower for longer

• Bond yields will fluctuate unpredictably

How has the Asian and emerging market credit performed despite recent challenges?

• It has deteriorated significantly

• It has remained stable and positive

• It has shown signs of collapse

• It has been unaffected by global trends

What is the stance on emerging market equities according to the transcript?

• Overweight on equities, underweight on credit

• Overweight on equities and credit

• Neutral on equities, overweight on sovereign and credit

• Underweight on all emerging market assets

What is holding back the growth in emerging markets as per the transcript?

• Strong economic growth in China

• Lack of catalysts and ongoing earnings downgrades

• High demand in manufacturing sectors

• Stable supply chain conditions