EM Valuations Monitor Are EM credit spreads about to surge? The yields of dollar-denominated emerging market government bonds have been broadly flat over the past month after having declined by over one percentage point between the end of January and the end... 29th July 2014 · 1 min read
EM Valuations Monitor EM equity valuations remain relatively attractive Emerging market equities were on track to outperform their developed market counterparts in Q2 for the first quarter in six. However, they still have a lot of ground to make up. Since the end of 2012... 30th June 2014 · 1 min read
EM Valuations Monitor Strong rally in Russian equities unlikely to last Over the past month, the stock market has performed better in Russia than in any other country included in the MSCI Emerging Markets Index, as tensions in Ukraine have eased. But the near-15% rally... 27th May 2014 · 1 min read
EM Valuations Monitor Low valuations should support EM equities One reason to be relatively optimistic about emerging market equities is their low valuation relative to their developed market counterparts. For example, price/12m forward earnings ratios are around... 8th May 2014 · 1 min read
EM Valuations Monitor Will credit spreads continue to fall in Latin America? The “stripped spread” over US Treasuries of the JP Morgan EMBI Global Latin America Index fell by 30bp in March, bringing its decline since the start of February to almost a full percentage point... 1st April 2014 · 1 min read
EM Valuations Monitor Are equities in Latin America still overvalued? Equities in Latin America have fared worse than those in other emerging market regions since the start of 2014, losing over 8% of their value. As a result, the 12- month trailing price/earnings ratio... 28th February 2014 · 1 min read
EM Valuations Monitor Are emerging market currencies now undervalued? Almost all emerging market currencies have depreciated further against the dollar over the past month. Looking at the real effective exchange rates of emerging markets, 20 of the 24 currencies we... 30th January 2014 · 1 min read
EM Valuations Monitor Turkish lira comes under fire A high-level corruption scandal has taken its toll on Turkey’s financial markets over the past month. The stock market has been the second worst performer among those of the emerging economies that we... 3rd January 2014 · 1 min read
EM Valuations Monitor Optimism surrounding Argentina may be overdone Bond markets have reacted positively to election results in Argentina which effectively mean that the incumbent, Cristina Fernandez de Kirchner, will be unable to serve beyond her current term ending... 27th November 2013 · 1 min read
EM Valuations Monitor Is the South African rand really undervalued? The extent of its fall so far this year has made the South African rand appear undervalued when the current real effective exchange rate is compared both to its long-run average and to its long-run... 31st October 2013 · 1 min read
EM Valuations Monitor Regional divergence in stock market valuations The recovery in emerging market equities – up almost 6% on average since this time last month – has boosted price/earnings ratios across almost all the major regions. From a historical perspective... 25th September 2013 · 1 min read
EM Valuations Monitor Are currencies now attractively valued? Emerging market currencies have come under renewed pressure over the past month and as a result, many now appear quite undervalued. Indeed, of the ten-worst performers since the publication of May’s... 30th August 2013 · 1 min read
EM Valuations Monitor Dollar-denominated bonds continue to languish Dollar-denominated emerging market government bonds underperformed similarly-rated US dollar corporate bonds significantly in the recent sell-off. Most of this underperformance has not been unwound... 31st July 2013 · 1 min read
EM Valuations Monitor Will lower valuations tempt investors back? The plunge in emerging market equity prices has driven the price/earnings ratios of the MSCI Emerging Asia Index and MSCI EMEA Index down towards their lowest levels since late 2011 and the earlier... 26th June 2013 · 1 min read
