A wave of social unrest across developing countries this year has caught many in...
LONDON - A wave of social unrest across developing countries this year has caught many investors off-guard and is challenging models designed to gauge political risk for investors, prompting some to pull money out.
The sharp market reaction has forced even seasoned money managers who pride themselves on an ability to navigate political risks often inherent in emerging markets to rethink. Some asset prices have seen sharp collapses. Lebanon’s bonds trade at less than half their face value, Hong Kong stocks have tumbled around 13% since April and Chile’s peso hit record lows.
Chile was an exception to the recent pattern of unrest, which tends to happen in the “fragile middle” nations which are semi-autocracies or weak democracies, said James Lockhart Smith, head of financial sector risk at Verisk Maplecroft. “Most Middle East countries have very young populations, high income inequality, so we’re avoiding places like Jordan and Oman which have similar demographics to places like Lebanon and Iraq,” said Allianz’s House.BNP Paribas Asset Management, with 436 billion euros in assets under management, was already mostly out of Bolivia and Venezuela before events escalated thanks to its own assessment matrix, said Bryan Carter, head of emerging market fixed income.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Next stock market crash: Strategist sees risk of December correction - Business InsiderA Wall Street expert who called the stock market's late-2018 meltdown warns another plunge could arrive in December — and shares his investing advice for 2020
Lire la suite »
Thousands march to up pressure on Hong Kong governmentPro-democracy protesters are renewing pressure on the Hong Kong government with three marches Sunday
Lire la suite »
Roomba's early Cyber Monday deals are here — the best deals include $250 off the well-reviewed 960 modelThe best early Cyber Monday 2019 deals on Roomba robot vacuums include $250 off the 960 model and $70 off the 675 model.
Lire la suite »
Hong Kong gears up for lunchtime rallies after weekend unrestHong Kong protesters geared up for a week of lunchtime rallies on Monday, a day ...
Lire la suite »
Rich people are worried and seeking old-fashioned securityFears of recession, natural disaster, unrest and negative interest rates send the wealthy in search of safe places to stash cash and valuables.
Lire la suite »
Hundreds march in Hong Kong against use of tear gasHundreds of Hong Kongers march to protest police use of tear gas, as the Asian financial hub gears up for further anti-government demonstrations following a week of calm
Lire la suite »