HSBC Identifies Opportunities

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    Investment grade and emerging corporate bonds and emerging markets sovereign debt are providing among the most attractive investment opportunities, says HSBC Global Asset Management’s ‘Investment Quarterly Report.’ The report shows that other themes where valuations are considered to be attractive include selective commodities (hard and soft) via outright exposure or to stocks in the sector and exposure to emerging consumption and infrastructure themes via both emerging and developed market stocks. Philip Poole, global head of macro and investment strategy, says “We currently favour the so-called cyclical sectors in emerging markets, namely industrials, materials, financials, and energy as central banks in countries including China, Brazil, Indonesia, and Thailand have cut interest rates (or reserve ratios) to stimulate growth as concern about inflation recedes. And many such countries still have the scope to ease further and to fund development projects with bond sales. In many Western countries, rates are already near zero and public debt is significant.”