MRB on Xinhuanet – March 5, 2020
Investors’ risk appetite will be rekindled and they will again seek higher yielding bonds as investors recalibrate their assessment of growth prospects in 2020, said MRB Partners.
“In our view, they will conclude that while the immediate impact on Q1 (quarter 1) and possibly Q2 (quarter 2) is negative, there is no risk of global recession in 2020,” said MRB Partners, citing positive developments in the fight against the novel coronavirus in China.
Low yields and interest rates, as well as dovish central banks in developed economies will “push” investors to seek better portfolio returns, noted MRB Partners.
Researchers with MRB Partners told Xinhua that the beneficiaries of this rotation will be high-yield segments in developed markets as well as emerging market bonds in general, in particular the highest yielder.