Podcast with Credit Suisse experts: Uncertainty is weighing on the economy
The COVID-19 crisis has swiftly plunged the global economy into a recession, but we are now starting to see signs of an economic recovery. This presents attractive opportunities for investors, including in emerging market bonds.
Economic developments marked by uncertainty
The breakout of the coronavirus pandemic led to an unprecedented correction in the global equity markets in March. Many markets have since regained some of the lost ground, due in part to the stabilizing measures of the major central banks. Because of the lockdown, though, there is considerable uncertainty over future economic development.
However, it is very likely the economy will recover, according to Oliver Adler, Chief Economist at Credit Suisse. "But it's not yet clear how quickly this will happen and how fast GDP will rise again." Nevertheless, the experts at Credit Suisse are fairly positive about the prospects for investors in the current environment. You can find out why and what the speed of the economic recovery will depend on in our podcast. You will also hear the opinions of our experts on the measures taken by countries and the main central banks.
Emerging market bonds are attractive right now
Risk premiums have grown significantly over the course of the crisis and make emerging market government bonds in hard currencies an attractive investment. "Many emerging markets have much better fiscal figures than in past crises," notes Walter Edelmann, Chief Global Strategist at Credit Suisse. And corporate bonds are also an interesting investment thanks to stimulus measures. Listen to the podcast to hear what segments offer the most promise for investors and why equities are still attractive as well.