A synchronized pickup in global economic activity has lifted the spirits of businesses, consumers and investors worldwide. Though many equity markets are near 52-week highs and credit spreads are near multi-year lows, corporate profits are now growing again in most countries. This profit rebound, along with our expectation that global growth will continue to strengthen, could help higher-yielding credit products generate excess returns over government bonds.
The US and UK are in later stages of expansion than Europe, but corporates in each region can still perform well if growth and business conditions continue to improve as we expect. Within EM, individual country performance will likely be driven by political and economic idiosyncratic developments, but broadly speaking, EM assets can benefit from the fundamental improvement we see globally.
Read on for a visual snapshot of our key themes across the globe.Read More