Lombard Odier Investment Managers

Top 400 Ranking: 196http://www.loim.com

Request More Information

Emerging Market Debt: Implementation really matters as fixed income investing paradigm shifts

With traditional risk premia subdued and interest rates in advanced economies at historical lows and likely to remain that way for some time, investors are being forced to look elsewhere to generate returns.

In our view, emerging market debt (EMD) in local currency offers an attractive opportunity on the back of both fundamentals and valuations. However, we think implementation really matters when it comes to accessing EMD given the underlying shift in the paradigm of fixed income markets.

Central bank dominance and tightening regulations mean today’s new world is characterised by fractured liquidity, and in the case of EMD, the risks also include increasing concentration in the same few positions or herding. Together, these two factors leave investors heavily exposed to growing liquidity and market risk.

Read the full white paper at the link beneath Related Files

Head Office
Queensberry House
3 Old Burlington Street
London
W1S 3AB
United Kingdom
Company website:
http://www.loim.com
Parent Company:
Lombard Odier Group
Year Founded:
1796
No. of investment offices worldwide:
12

What’s new

  • Emerging Market Debt: Implementation really matters as fixed income investing paradigm shifts index

    Emerging Market Debt: Implementation really matters as fixed income investing paradigm shifts

    White papersThu, 1 Sep 2016

    With traditional risk premia subdued and interest rates in advanced economies at historical lows and likely to remain that way for some time, investors are being forced to look elsewhere to generate returns.

  • Risk-based investment: Surviving the negative rates and targeting growth index

    Risk-based investment: Surviving the negative rates and targeting growth

    White papersWed, 1 Jun 2016

    A key concern for Nordic and other European insurers is the impact of today’s low/negative rate environment on their business models.

  • The World Has Changed: Fixed Income 2.0 index

    The World Has Changed: Fixed Income 2.0

    White papersWed, 13 Apr 2016

    Central bank intervention has fundamentally altered fixed income markets. We think investors need to redesign their fixed income exposure to better capture yield and manage default risks. 

  • Banks – What happened and should we be worried? index

    Banks – What happened and should we be worried?

    White papersFri, 1 Apr 2016

    For most European bank CEOs and their stakeholders, the weight of the financial crisis remains heavy. Balance sheet repair, ongoing litigation, negative interest rates, regulation and now, the possibility of a global recession are just some of the issues to contend with.

  • Investing like an Entrepreneur index

    Investing like an Entrepreneur

    White papersWed, 16 Mar 2016

    Factor-based strategies can sometimes appear complex. Our approach simply aims to select undervalued, sound companies, and combine them in a well-diversified portfolio. Like an entrepreneur would do. 

Search all our content