meta_pixel
Tapesearch Logo
Log in
Thoughts on the Market

Investors Look Beyond U.S. for Opportunities

Thoughts on the Market

Morgan Stanley

Markets, Macro, Investing, Fixed Income, Equities, Business, Economics, Strategy, Alternatives, Global

4.81.3K Ratings

🗓️ 21 March 2025

⏱️ 9 minutes

🧾️ Download transcript

Summary

Amid lower growth and inflation concerns in the US, investors have begun scouring international markets for other opportunities. Our analysts Andrew Sheets, Neville Mandimika and Anlin Zhang dig into one potential outperforming category. 


Read more insights from Morgan Stanley. 



Transcript

Click on a timestamp to play from that location

0:00.0

Welcome to Thoughts in the Market.

0:02.0

I'm Andrew Sheets, head of corporate credit research at Morgan Stanley.

0:05.0

And I'm Neville Mandimica from the Emerging Markets Credit Strategy team with a focus on Simeo.

0:10.0

And I'm Anne Lenzang, U.S. Credit Strategists.

0:13.0

And today on the program, we're going to talk about high-yield bonds in the U.S. and emerging markets,

0:19.0

and why we think emerging markets, or EM, in many cases, offer

0:22.9

better opportunity. It's Friday, March 21st at 2 p.m. in London. And it's 10 a.m. in New York.

0:31.3

So Neville and Lynn, it's great to talk to you. And I want to talk to you about a recent report

0:35.7

that we all wrote looking at the market

0:37.7

for high-yield bonds in both the U.S. and emerging markets. In some ways, these two markets are

0:43.2

similar. Both represent bonds with ratings below investment grade. Both are denominated in U.S.

0:48.5

dollars, and both offer more elevated yields. But they're also quite different. The U.S.

0:53.3

high-yield market represents lending to

0:55.0

companies in the United States. The E.M market, for our purposes, represents lending to countries.

1:01.4

So Neville, that's where I'd like to start. When you think about that risk of lending to

1:05.5

countries that carry lower ratings, what are some of the key metrics that you look at to determine

1:09.7

if you're being compensated

1:11.1

for that risk? We look at three distinct factors. The first one being fundamentals, including

1:16.1

credit ratings as to whether they're getting worse or better. We also look at so-called technicals,

1:21.1

which show you how much a country needs to issue and how investors are already positioned in a

1:25.9

country's sovereign debt. And then finally,

1:28.3

valuations, what investors are being paid to take on that risk, and that is often presented

...

Please login to see the full transcript.

Disclaimer: The podcast and artwork embedded on this page are from Morgan Stanley, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Morgan Stanley and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.

Copyright © Tapesearch 2025.