Skip to content
Subscriber Only

Emerging-Market Investors Don’t Expect an Olive Branch in Trade Talks

  • BNP Asset has cut exposure in junk debt, Aviva is buying yen
  • China may see it as advantageous to keep trade war alive: ING
Aerial Views of Tianjin Port as Xi Jinping Plans Europe Visit in Bid to Offset Concerns, Boost Trade
Updated on

Trade war-hardened emerging-market investors aren’t counting on any breakthrough in trade negotiations as talks between the U.S. and China are set to resume Thursday in Washington.

BNP Paribas Asset Management has been reducing its exposure in junk-rated debt, while Union Investments Privatfonds GmbH is favoring investment-grade rated bonds over high-yield debt. And in case any breakdown in discussions triggers a flight to safety, Aviva Investors has been been buying the yen.