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No place to hide when rates are (near) zero

- "EM markets have benefited from the sustained bull-flattening in US Treasuries and calm global equities and commodity prices. This suggests investors have adjusted their view on global growth down, but have not made ‘recession’ their baseline scenario. Flows to EM have been sticky, underscoring a point we have made before: that low core market rates are a powerful floor for asset prices where there is no structural fault line, ie, in a large part of EM. We are not advocating a break of the range, but note that there is still room for selective receivers, constructive credit views and RV."

Barclays Emerging Markets Weekly 20100819

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