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By Mark DOWDING, co-Head of Developed Markets at BlueBay AM
The US economy powers ahead amid elevated EM tensions and worries around the Italian budget. In the UK, parliament returns from recess confronted by a Brexit showdown.
With investors still in the process of returning from summer vacations, markets have continued to trade off headline risks with much of the volatility led by emerging markets (EM). US Treasury and Bund yields have drifted higher, helped by a new record high in US equities and there continues to be a real schism between what is happening in EM and developed markets (DM) for the time being.
In DM, corporate bond issuance has been ramping up early ahead of the seasonally heavy month of September,...
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