Geopolitical ramifications of the upcoming US election should not be underestimated

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In the US presidential election, the polls have tightened over the past several weeks and market-implied betting probabilities have started to close. Eric Stein, Co-Director of Global Income at Eaton Vance Management notes: “At this point, however, I think Joe Biden should still be considered the frontrunner. Recent momentum for President Trump depends heavily on

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Weakening fundamentals in high yield create a dramatic uptick in fallen angels

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The COVID-19 crisis and sharp fall in economic activity has led to deteriorating corporate fundamentals for many high-yield issuers, which we think warrants close watching, says Jeffrey D. Mueller, Co-Director of High Yield Bonds and Portfolio Manager at Eaton Vance. He notes: “We’ve seen a contraction across earnings, revenue growth and interest coverage, along with

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Conviction edges up for emerging-market credit

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Emerging-market (EM) debt rebounded strongly in the second quarter across hard currency sovereign and corporate credit as well as local-currency debt. Bradford Godfrey, Institutional Portfolio Manager Director of Alternative & Asset Allocation Strategies at Eaton Vance says: “We believe the market has entered a new phase following the broad-based recovery in the second quarter that

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Second quarter EM debt rebound presents selective opportunities for investors

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The second quarter represented a dramatic rebound for financial markets, including Emerging Markets (EM), after the severe sell-off in March. COVID-19 continues to pose a generational challenge to the lives and livelihoods of some of the world’s most vulnerable people. The Emerging Markets Debt Team at Eaton Vance Management report: “But at the same time,

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New research shows small-cap investing in the face of pandemic can still offer long term opportunities

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While volatility recorded in the first quarter of 2020 has been unprecedented and challenges remain, global investment manager, Eaton Vance, continues to see opportunities for investors with a long- term mindset in small-cap equities. In a recent research paper, Aidan Farrell, Director of Global Small Cap Equity at Eaton Vance, presents his analysis of factor

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Investors should take advantage of further volatility in high yield markets

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Global high-yield markets are tussling between trying to gauge the extent of lockdown-driven global economic malaise on the one hand, and the positive impact from enormous stimulus measures that have been announced around the world, on the other. Stephen C. Concannon, Co-Director of High Yield Bonds Portfolio Manager, Jeffrey D. Mueller Co-Director of High Yield

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Pandemic highlights need for engagement says Calvert

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For socially responsible investors, engagements have never been more vital than they are right now. This was highlighted by John Wilson, Director of Corporate Engagement at Calvert, an Eaton Vance affiliate. Wilson says: “The COVID-19 pandemic has exposed numerous vulnerabilities in our market system. “Increased corporate specialisation has left many companies highly dependent on a

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Investors should consider lasting effects of higher-quality macroeconomic developments

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Global markets have settled into a more normal, high-volatility environment from the extreme volatility over the past few weeks. As hot-spot countries like Spain and Italy hopefully have passed their peak mortality rates, global markets appear to be finding their footing. Michael A. Cirami, CFA, and Eric Stein, Co-Directors of Global Income for Eaton Vance

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EM debt relatively unscathed by coronavirus – so far

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Thus far, emerging markets debt has been relatively unscathed by the coronavirus, driven by expectations that the impact on growth will be temporary, and that central banks will intervene with lower rates. The Emerging Markets Debt team at Eaton Vance, a global investment manager, notes: Obviously, the risk to EM debt will likely grow if

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Country focus comes to the fore in emerging markets

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It’s been a great year for emerging markets (EM). Through the third quarter, the major EM debt indexes were up sharply, as a lot of things have come together for the sector. There were fundamental improvements in a number of EM countries, although by no means all of them. And valuations were compelling. From a

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