Deutsche Bank on The Best And Worst Performing Assets In May
From ZeroHedge:
...The strong performance in US rates has definitely provided a boost to
EM and spread products across the world. This has trumped good or bad
data/fundamentals as the driver of assets in the last few weeks. Having
said that, a strong election outcome in India and some emergence of
stability in the Russia/Ukraine stand-off were also helpful for EM
sentiment. EM bonds were up nearly 2.5% in May bringing their YTD gains
to 5%.
Away from EM fixed income, DM spread products also did well with
positive total returns seen across IG and HY indices on both sides of
the Atlantic. Given the performance in rates, IG has generally
outperformed HY but much of this is due to the longer duration of IG
indices. It’s worth noting that European and US IG/HY credit benchmarks
have yet to have a negative month so far this year....MORE
