Time to Reengage in the EM Carry Trade?
“In a global bond
selloff fueled by expectations that Trump will increase government spending,
emerging-market traders are by no means capitulating. While bracing for the
risks of protectionist policies, they’re betting faster growth and narrowing
current account deficits will help most developing countries weather the rout.
The recent declines
have “created a great buying opportunity,” said Koon Chow, a strategist at
Union Bancaire Privee Ubp SA in London. “We could get to the stage where in one
or two weeks time, U.S. Treasury yields stabilize, and if that happens,
emerging markets will come back.””
Egypt Tries Devaluation
http://www.economist.com/news/middle-east-and-africa/21709612-government-has-finally-allowed-overvalued-pound-depreciate-egypt