By Dara O’Sullivan, Derrick Leonard, and Ilan Solot Covid-19 related measures for restricted markets remain largely unchanged this week. Philippines, Bangladesh and Kuwait have extended their lockdown periods, while Kenya and Nigeria continue to face limited liquidity. Please see trading … Continue reading Restricted Market Trading Comments
EM had another rough week, as weak data and warnings from the Fed and top investment professional hurt market sentiment. Virtually every currency losing ground against the dollar, and the only exceptions were TRY, THB, and IDR. Risk sentiment is likely to remain on the ropes this week, as investors will have to wait several weeks to gauge how reopening economies fare around the world. Continue reading “EM Preview for the Week Ahead”
In the latest FX Quarterly, our strategists recount the flurry of global policy responses around the world to the ongoing COVID-19 crisis. We also provide our outlook on developed and emerging markets in Q2 2020. Continue reading “FX Quarterly Outlook for Second Quarter 2020”
Turkish policymakers continue to stumble. The ban of three foreign banks from trading lira was quickly reversed, adding to the sense of disarray. Indeed, this feels like a rerun of the last lira crisis back in August 2018. Surprisingly little has changed fundamentally in the nearly two years that have passed, as officials have largely refrained from taking any significant actions except those that make it even harder to invest in Turkey. Turkey used to be the darlings of EM. Now, we fear it will end up being like Argentina, where it will take a generation for foreign investors to return. Continue reading “Turkey’s Desperate Moves Unlikely to Buoy the Lira (Updated)”
Over the past two months we have witnessed historic turmoil followed by unprecedented intervention by policy makers and central banks in supporting the capital markets (and more). In many ways the 2020 COVID-19 pandemic is very different from the 2008 global financial crisis, but for some, certain old concerns still linger. In the face of short selling bans and worries about market liquidity, we discuss below how best to navigate some of the common objections and concerns related to securities lending and how to position your securities lending program in the current environment and beyond.
Continue reading “Different Type of Crisis, Some Old Concerns”