Tight credit spreads on US corporates heighten domestic volatility risk, but EM credit remains promising
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#d69d9122 ver:0.17
Tight credit spreads in US increase domestic volatility risk, but EM credit remains promising. EM companies have improved balance sheets, offering potential for higher spreads. Latin America presents best opportunities with improved balance sheets and attractive spreads. US dollar strength and high interest rates hinder local currencies, but as global inflation cools, EM central banks may cut rates, benefiting local currencies. Domestic firms face inflated credit risk due to regional issues, while US corporate bonds offer attractive yields. #credit #EM #LatinAmerica #economy...
#newstr #CreditSpreads #UsCorporates #DomesticVolatilityRisk
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