[Capstone] Deliverables for SIPA publication
Joanna Zeng
In this report we demonstrate that local currency emerging market debt is now a compelling asset class for individual investors.
Do you remember those “Third World” and “Lesser Developed Countries” from the Cold War era stigmatized with extreme poverty, volatile economies, and rife with corruption? Many of those countries in Latin America, South Asia and Eastern Europe have since performed strongly, progressing to “Emerging Markets” and some to developed status (e.g. South Korea, Singapore, Taiwan). The future of emerging markets remains bright:
• Gross domestic product (GDP) growth is high
• A young labor force propels productivity
• Capital and trade balances are favorable and improving
• Political institutions and corporate governance have strengthened
Many investors have participated in these markets through their equity exposure, but as market depth and breadth have improved, institutional investors are increasing allocations to Emerging Market fixed income. Emerging Market fixed income has offered high yields, improving credit, and provided additional diversification to investor portfolios. Further, Emerging Market sovereigns and companies are now issuing more debt denominated in local currency. These bonds offer investors the additional potential for currency appreciation and diversification.
Adam Quinton
On Friday, May 31, 2013, Josephine Vu wrote:
Dear Joanna and the Credit Suisse Capstone team,
Thank you so much for submitting to us your final deliverables to the client, and congratulations on such a great accomplishment!
We will be happy to hold off on publishing the report on our website, pending confirmation from Ryan of an update, publishable report. Thank you again, and I look forward to continuing to keep in touch as your project further develops.
Thank you again,
Josephine
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Josephine Vu
Capstone Program CoordinatorOffice of Academic Affairs
Columbia University | SIPA1418 International Affairs Building
From: Joanna Zeng [mailto:joanna...@gmail.com]
Sent: Monday, May 13, 2013 3:26 PM
To: jv2...@columbia.edu; Sullivan, Ryan
Cc: capstonecs; Adam Quinton
Subject: [Capstone] Deliverables for SIPA publication
Josephine,
Hope this email finds you well. In reponse to your request below, we are attaching two deliverables for SIPA publication. 1) 250-word abstract / executive summary 2) presentation to Credit Suisse clients. Please beware that we are in the process of coordinating with our clients to fine-tune our final report, which is scheduled to be published by Credit Suisse in July. As we have previously communicated with you, we will be able to send the published report to you as soon as we receive the green light from our clients. I've CCed Ryan here in case you would like to coordinate with him directly. I'm more than happy to stay on as a liaison post graduation.
Thanks and best regards,
Joanna
Cell: (917)208-1895
Email: kz2...@columbia.edu
. We ask that all Capstone workshop teams provide our office with an electronic copy of their full report and/or presentation along with an updated 250-abstract to be published on our website (here:http://new.sipa.columbia.edu/academics/capstone-workshops/mia_mpa). However, the publication of the report should first be approved by the client. If the client does not wish for the full report to be disseminated due to confidential information, we will only post the abstract or a redacted report. Please encourage students to email in the final deliverables by May 13th. [to Jospehine Vu.]
Executive Summary
In this report we demonstrate that local currency emerging market debt is now a compelling asset class for individual investors.
Do you remember those “Third World” and “Lesser Developed Countries” from the Cold War era stigmatized with extreme poverty, volatile economies, and rife with corruption? Many of those countries in Latin America, South Asia and Eastern Europe have since performed strongly, progressing to “Emerging Markets” and some to developed status (e.g. South Korea, Singapore, Taiwan). The future of emerging markets remains bright:
• Gross domestic product (GDP) growth is high
• A young labor force propels productivity
• Capital and trade balances are favorable and improving
• Political institutions and corporate governance have strengthened
Many investors have participated in these markets through their equity exposure, but as market depth and breadth have improved, institutional investors are increasing allocations to Emerging Market fixed income. Emerging Market fixed income has offered high yields, improvin
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Adam Quinton