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Strategy Report

The Trump Trade And EM Fixed Income

by Arthur Budaghyan, Chief EM/China Strategist  

As the odds of a Trump victory increase, there are indications that the “Trump trade” has commenced in global financial markets, with negative short-term implications for EM. In short, the US dollar will strengthen, and US bond yields will rise in the lead-up to and after the election if Trump wins. In response, EM countries’ currencies will depreciate, and their fixed-income and equity markets will suffer over the coming months.

BCA Research | Emerging Markets Strategy

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