Despite continued growth and inflation, long rates back off first-quarter highs

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Despite continued growth and inflation, long rates back off first-quarter highs, as outlined by Eric Stein, Eaton Vance chief investment officer, fixed income, in his latest commentary. Mr Stein notes: “The markets got a bit overextended with the first quarter surge in long-term rates and inflation expectations, and the second quarter reversal appears to reflect

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Morgan Stanley closes acquisition of Eaton Vance

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Morgan Stanley has completed the previously announced acquisition of Eaton Vance Corp. in a stock and cash transaction. Eaton Vance common stockholders were offered 0.5833 Morgan Stanley common shares and $28.25 per share in cash for each Eaton Vance common share, and had the opportunity to elect to receive the merger consideration all in cash

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Five reasons to be bullish on local-currency emerging-market debt

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Eaton Vance is currently upbeat about the investment prospects for local-currency-denominated Emerging Market Debt (EMD). The Eaton Vance EMD team, managing U.S.$8.4 billion in assets, has EM FX as a clear “overweight” risk factor for the first time ever. The team is simultaneously positive (“moderate overweight”) on EM local interest rates, EM sovereign credit and

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Credit market valuations imply improved fundamentals in 2021

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High-yield corporate bond and floating-rate loan markets ended 2020 on the up, with a strong rally following news of vaccine efficacy in November. The loan market closed the year with a 3.1% total return, while the bond market was up just over 6%, aided by higher sensitivity to falling interest rates. “Default rates rose throughout

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Eric Stein appointed Chief Investment Officer, Fixed Income at Eaton Vance Management  

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Eaton Vance Corp. (Eaton Vance) (NYSE: EV) has announced the appointment of Eric A. Stein, CFA, as Chief Investment Officer, Fixed Income, of Eaton Vance Management (EVM), effective November 1, 2020.  Mr. Stein will replace Payson F. Swaffield, CFA, who previously announced his intention to retire. Mr. Stein will report to Thomas E. Faust Jr.,

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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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