Global Investing

Emerging market wine sophisticates?

Serving wine instead of beer at its annual rooftop soiree? Is this some kind of subliminal message specialist broker Auerbach Grayson is trying to send, ie: that emerging markets are mature and here’s the vino to prove it?

Or, is the message not in a bottle but in a case? Don’t limit your exposure to emerging markets but increase it for growth. Only a slight problem here in that emerging market stocks are underperforming developed markets so far this year. They underperformed in 2011 as well.

But don’t let facts get in the way of wine.

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Emerging bonds: crawling out of the woodwork

Now that markets appear to have decided that a $1 trillion stabilisation package from the European Union is enough to soothe global nerves and ward off a sovereign debt crisis, emerging market sovereigns and corporates may start to issue bonds again.

Emerging market debt issuance was heading for a bumper year — at more than $100 billion issued so far — before investors started to fear an imminent default by Greece and markets froze up.  

But a return this week in emerging sovereign debt spreads below the psychologically key threshold of 300 basis points over U.S. Treasuries is likely to encourage issuers back again.