CCB Return - August 2016

2016-08-31

The CCB has returned a + 1.40% in August 2016, bringing the YTD performance at + 5.70%.

As the repercussions of BREXIT and overall low global growth continued to reverberate for the greater part of August, the drive for a negative interest rate policy and / or a prolonged low rates policy in G-7 countries benefited Emerging Markets assets.


Hard currency debt instruments continued to attract significant inflows, putting the category solidly in its first net year surplus in four years.

However, in the last week of the month, a potential for rate increase in its upcoming September meeting was commented by Vice Chairman Fischer since inflation and unemployment may be close to equilibrium levels.

In any case, the current reality is that the continued depressed rates environment in the developed world continue to burden those who invest in very low or negative yields in G7 fixed income securities.

Above all, EM High Yield themes continue to offer substantial pick up to Developed Markets counterparts.

In the portfolio, we have decided to implement two new direct lines in August: Anglogold 6.5% 2040 - as a result of the call made early August on Anglogold 2020 - as well as Petroleo Mexicano 6.625% perpetual, callable in october 2016.