There has not been much of an improvement/recovery in the Chinese economy. Credit growth is weakening anew, which warrants a downbeat cyclical outlook for China's industrial sectors. Malaysia is heading into a classic credit/banking…

The latest data releases confirm that the Chinese economy regained its footing. In the near term, growth figures should continue to surprise to the upside. Earnings preannouncements by Chinese listed firms show a significant…

Developed Market bond yields are too low relative to improving global growth and the strong recovery in risk assets post-Brexit. Reduce portfolio duration to below-benchmark.

Special Report

Long-time subscriber Mr. X recently visited our office to discuss three issues: Brexit, the outlook for China and the seeming contraction between the performance of equity and bond markets. This Special Report is a transcript of our…

Special Report

Today, on a tactical basis, we are moving our allocation on EM hard currency bonds to neutral from underweight. In this Special Report, we elaborate on the reasons leading to this decision.

A number of divergences have emerged in global financial markets. These gaps are unsustainable. The recent improvement in Asian trade/manufacturing has been largely due to firming demand for electronics/semiconductors. Meanwhile,…

A benchmark overall duration stance is still warranted, as central banks will maintain exceptionally accommodative monetary policies to offset potential Brexit-related shocks to confidence.

Rising policy uncertainty is negative for global equity multiples.

Equity and Treasury market positioning support the notion of a bounce in risk assets, possibly egged on by dollar weakness.

EM/China oil demand is not as strong as some reputable energy sources have indicated. As and when the oil market shifts its attention from supply cutbacks to subdued EM/China oil demand, oil prices will relapse. Renewed drop in…