NN IP: Unruhige Investoren

Economic Outlook
EM/DM divergence – how long can it be sustained?

These week we share some further thoughts on the divergence between developed and emerging markets, with particular attention for the core issue: emerging market debt and China weakness.  Read more

Asset Allocation
Correction in risky assets reaccelerated in recent days

The correction in risky assets appears to have reaccelerated over the past few days. The corporate news flow has not improved. This has further soured the mood amongst investors, who are currently more driven by fear than by thorough analysis.  Read more

Fixed Income
We favour Investment Grade over High Yield credits

Spread products are facing a number of headwinds which are unlikely to fade any time soon. EMD and High Yield, which are most exposed to EM and commodity concerns, may remain out of favour. Due to the defensive nature of the current search for yield, Investment Grade credits are preferred.  Read more

Real Estate 
Real estate not immune to global growth worries

Despite a decline in government bond yields, real estate also has suffered from increased risk aversion. Although the low interest rate environment is beneficial, the widening of credit spreads has affected the asset class. Read more