As China gradually emerges from lockdown, emerging market debt and equity investors are trying to gauge the impact of the coronavirus pandemic on its economy – and the knock-on effects for other emerging markets.
The scale and speed of COVID-19’s impact on global financial markets has caused emerging market debt returns to decline at a pace not seen since the global financial crisis. However, history suggests the recovery of the asset class may also turn out to be quick.
While the COVID-19 pandemic may be unlike anything financial markets have experienced before, the past still offers valuable lessons for investors trying to make sense of the crisis, explains Euan Munro.
The impact of COVID-19 and policy measures taken by global authorities to contain it have erased the tentative signs of economic strength seen at the start of 2020. As the epidemic has advanced, the market response has been brutal. Sunil Krishnan reflects on how portfolio managers diversify multi-asset portfolios, and the extent to which these measures have been effective in the current round of volatility.
Correlation patterns between assets have not been behaving conventionally over the last month. Most notably, there have been periods when US Treasury yields have been rising (and their value falling) at the same time as equities have been selling off. Why have investors been abandoning safe-haven assets in the midst of the steepest market falls we have seen for 40 years?
“The stock market is a device for transferring money from the impatient to the patient” Warren Buffett
The devastating coronavirus outbreak has prompted renewed discussion of “black swans”: rare, unexpected events that wreak havoc on markets and economies. But is COVID-19 really a black swan? And to what extent can investors ensure their portfolios are resilient to sudden shocks of this kind?
As the spread of COVID-19 and government response continue to evolve, we analyse recent developments and how they could affect European real estate.
As COVID-19 sweeps across the world, a contraction in global growth is causing an adverse short-term reaction to the economy and financial markets. While the extent of contagion from public markets to private debt remains unclear, transactions with strong downside protection should remain more resilient through the crisis, explains Nikhil Chandra.
In early February, with financial markets oblivious to medical experts’ warnings about the dangers posed by the coronavirus, Ian Pizer of Aviva Investors’ investment strategy team began to look into the medical research to learn more about the potential outcomes and the implications for the global economy and markets. What he discovered raises questions about financial market participants’ ability to react to issues they don’t fully understand.
With governments urged to do more to tackle climate change, carbon taxes are being touted as a politically expedient solution.
The latest episode of The AIQ Podcast explores the psychology of climate change and how to engage individuals in the quest for solutions.
More than 40 years since a senior NASA scientist told US Congress of concerns about human activities disrupting the climate, experts are warning of an impending climate catastrophe and the financial sector is wrestling with the implications.
Economic development is at a crossroads for emerging markets, and the road ahead will need to be paved with environmental, social and governance considerations.
The results of the recent European elections, in which Green politicians made a surprisingly strong showing, were just the latest indication that Europeans’ attitudes to environmental issues are shifting.
We speak to the political scientist about the long-term themes affecting emerging markets, from the trade war to technological automation to climate change.
Retiring at 60 is a relatively new concept, and possibly a short-lived one in our history. As populations age – and age better – people are looking at a host of ways to stay in work and sustain their retirement income. We present five charts that sum up the changing landscape.
With valuations at multi-year lows and the UK out of favour with global investors, what’s the right approach for a UK equity income manager? Chris Murphy, manager of the Aviva Investors UK Equity Income Fund, says there are some rich pickings amid the volatility.
Key elements of success are admitting to errors, sharing information and asking the right questions. After 10 years at the helm of the UK Equity Income Fund, Chris Murphy shares his lessons learned.
With robust tools and guides, investors can improve their chances of reaching their desired financial destination rather than taking a wrong turn.